The potential for losses arising from changes in interest rates.
Interest Rate Risk
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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Risk refers to the potential for financial loss or uncertainty regarding the return on investment.
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NIRP stands for “negative interest rate policy”. NIRP is a macroeconomic concept that describes conditions characterized by negative nominal interest rates. It’s when central banks resort to...
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A stop loss is a limit order in which a trade is closed when a specified price is reached and is used to protect against further losses.
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Carry trade is a widely-used trading strategy that involves borrowing in a low-interest-rate currency and investing in a high-interest-rate currency to profit from the interest rate differentials. This strategy is particularly popular in the foreign exchange market, where traders seek to capitalize on the differences between countries’ interest rates. Let’s explore the concept of carry […]