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Terms Dictionary

Risk

7 definitions in this topic

Beta

A measure of a stock's volatility in relation to the overall market. A beta greater than 1 indicates higher volatility than the market, while less than 1 indicates lower volatility.

Debt-to-Equity Ratio

Total liabilities divided by shareholders' equity, a standard gauge of financial leverage.

Drawdown

The peak-to-trough decline of an investment, used to describe worst-case loss during a period.

Hedge

A position taken to offset potential losses in another holding, typically using options, futures, or inverse exposure.

Leverage

Using borrowed money to increase potential returns and potential losses on an investment.

VIX

The index of expected 30-day S&P 500 volatility implied by options prices, often called the fear gauge.

Volatility

A statistical measure of the dispersion of returns for a security or market index. Higher volatility means larger price swings and greater risk.