Risk-on
Definition, Meaning & Examples
Part of speech noun
Quick meaning: Risk-on is a noun meaning (finance) A mode of investment behavior in which investors shift low-risk investments to more profitable high-risk investments.
Meaning
(finance) A mode of investment behavior in which investors shift low-risk investments to more profitable high-risk investments.
Example Sentences
The higher the value of c1 (i.e., the higher the value of α), the faster the transition from a risk-off to a risk-on mode.
Capital flows have, however, continued to exhibit their well-known volatility, given the risk-on and risk-off scenario driven by investors' perception of the macroeconomic and financial developments in the source countries rather than the recipient countries.
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-on
Common opposites include risk-off.
Related Words
Related dictionary entries include risk-off, risk, speculation, diversification, leverage, round trip.
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Sources & Attribution
FreeDictionaryAPI.com / Wiktionary · Original source · CC BY-SA 4.0
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