Community Forex Questions
What is meant by investment risk?
Investment risk is the possibility of losing all or part of your investment funds. Among the most common risks are:
- Non-recovery of profits, when the investor has to bear the loss of expected profits instead.
- Inflation;
- No fencing;
- Lack of diversity.
It is best to invest in bank deposits and government bonds in Russia, which do not provide large returns but are stable.
Stock market investments are riskier, with yields reaching 25% per year, but also have the same probability of losses.
Investing in start-ups, PAMM accounts, cryptocurrencies, etc. is considered to be the most risky.
- Non-recovery of profits, when the investor has to bear the loss of expected profits instead.
- Inflation;
- No fencing;
- Lack of diversity.
It is best to invest in bank deposits and government bonds in Russia, which do not provide large returns but are stable.
Stock market investments are riskier, with yields reaching 25% per year, but also have the same probability of losses.
Investing in start-ups, PAMM accounts, cryptocurrencies, etc. is considered to be the most risky.
Investment risk refers to the potential for losing some or all of the original investment or not achieving the expected financial returns. It encompasses various types of risks, including market risk (fluctuations in market prices), credit risk (borrower’s default), liquidity risk (difficulty in selling the investment), and inflation risk (diminished purchasing power). The degree of risk varies with different investment types; for instance, stocks are generally riskier than bonds. Investors must consider their risk tolerance, financial goals, and investment horizon when assessing risk. Proper risk management, diversification, and thorough research can help mitigate these risks, aiming for a balance between potential returns and the investor’s capacity to withstand potential losses.
Jan 31, 2022 10:41