Different types of risk

Discussion in 'Risk & Money Management' started by Asia Etrader, Aug 13, 2007.

  1. Asia Etrader

    Asia Etrader Member

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    Do you know how many different types of risk there are?

    Systematic Risk or market risk
    Unsystematic Risk - Stock or company specific risk
    Credit or Default Risk - can they pay the interest on the load or the dividend on that stock
    Country Risk - Measure of politcial and economic stability
    Foreign Exchange Risk - will your money depreciate when you buy an asset in another country?
    Interest Rate Risk - will the central bank raise interest rates
    Political Risk - Politcal stability of a country
    Execution risk - the time between when you see your price and when the trade actually goes to the market.

    Do you know how to avoid or minimize these risks? Well the risk section of my website will try to answer those questions and tell you what the pros are doing. http://www.asia-etrading.com/electronic_trading_risk.php Risk is big business. Did I miss any other risk?
     
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