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What is investment risk?
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2nd Dec 2009 by Gary
Investment risk is how much you stand to lose on any particular investment. The more possible upside to what you're investing in, the more risk there is, and the more money you can lose. Money market funds are an example of a low risk investment, where losing money, while possible, is rare. An example where you can lose a lot of money is when you invest on margin, where you don't use as much of your money up front, but can be asked to invest more depending on the performance of the product you're investing in.
Investment risk is how much you stand to lose on any particular investment. The more possible upside to what you're investing in, the more risk there is, and the more money you can lose. Money market funds are an example of a low risk investment, where losing money, while possible, is rare. An example where you can lose a lot of money is when you invest on margin, where you don't use as much of your money up front, but can be asked to invest more depending on the performance of the product you're investing in.
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6th Oct 2009 In Investing
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Subjects: risk,