Categories
Investments glossary

Unlimited Risk

Unlimited risk refers to a situation where there is potential for unlimited losses on a trade or in a particular investment. Any time an asset’s price can move indefinitely against a trader’s position means they are facing unlimited risk. A short trade is an example of a strategy with unlimited risk.

Click to rate this post!
[Total: 0 Average: 0]

Leave a Reply

Your email address will not be published. Required fields are marked *