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Different types of risk
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/electro...ading_risk.php Risk is big business. Did I miss any other risk?
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