downside risk


The likelihood that a security or other investment will decline in price, or the amount of loss that could result from that potential decline.

Use downside risk in a sentence

You need to always know what the downside risk might be and do your best to avoid reaching it if you can.

​ Was this Helpful? YES  NO 2 people found this helpful.

My policy is to put trailing sell orders on the stocks within my portfolio to limit the downside risk and protect profits earned to date.

​ Was this Helpful? YES  NO 8 people found this helpful.

There was some slight downside risk, but on the whole the play seemed like a solid one, so we went ahead and pulled the trigger on the deal.

​ Was this Helpful? YES  NO 6 people found this helpful.

Show more usage examples...

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
upside potential equity collar