Risk-off
Definition, Meaning & Examples
Part of speech noun
Quick meaning: Risk-off is a noun meaning (finance) A mode of investment behavior in which investors shift high-risk investments to low-risk investments.
Meaning
(finance) A mode of investment behavior in which investors shift high-risk investments to low-risk investments.
Example Sentences
It is also noteworthy that risk-off events have happened more often since 2007.
My answer is a straightforward no, but that the recent episode of global financial market turmoil is likely to be more serious than any period of volatility and risk-off behaviour since 2009.
The yen tends to appreciate in the aftermath – first two quarters – of risk-off episodes, whether the appreciation is measured as nominal, real effective, or bilateral against the U.S. dollar (Figure 6).
In a risk-on environment, they then sell those currencies and use the proceeds to buy risk assets with greater price appreciation potential. In a risk-off environment, they're compelled to sell their risk assets and buy back those funding currencies that they previously sold.
Antonyms for risk-off
Common opposites include risk-on.
Related Words
Related dictionary entries include risk-on, risk, diversification, hedge, speculation, round trip.
Related Dictionary Tools
Sources & Attribution
FreeDictionaryAPI.com / Wiktionary · Original source · CC BY-SA 4.0
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