Risk affected by governmental actions that will have a negative effect on a trader’s position.
Political Risk
Related Terms
-
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 […]
-
The “Fed put” is a term used to describe the perceived support that the Fed provides to financial markets in times of turmoil.
-
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...
-
Position sizing refers to the process of determining the number of units to trade, based on your risk tolerance and the size of your trading account.
-
The debt ceiling, a hotly debated topic in U.S. politics, is a legal limit on the amount of debt the federal government can incur.