Amount of money a person is willing to lose.
Risk Capital
Related Terms
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Risk sentiment is a term used to describe how financial market participants (traders and investors) are behaving and feeling. What traders choose to buy or sell means balancing how much they are prepared to lose with how much they hope to earn. You can look at risk sentiment as the expression of traders’ and investors’ willingness to […]
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A binary option is a type of options contract in which the payout will depend entirely on the outcome of a “Yes or No?” or “True or False” proposition. Don’t be intimidated! Its name may sound complicated, but binary options are arguably a simpler way to trade than traditional options or currencies. Just like traditional […]
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RORO stands for “Risk On, Risk Off”. RORO describes a market environment where price behavior responds to and is driven by, changes in risk tolerance by investors and traders. The change in risk...
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The term “risk off” is used to describe the risk sentiment where traders and investors in the financial market reduce their exposure to risk and focus on protecting their capital. In a “risk off”...
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Risk appetite Is the general level of risk that a trader can handle. It is a gauge of how “risk hungry” traders are. If risk sentiment is up and times are good, risk appetite grows and traders are...