5 Risk Metrics You Should Know Before Trading
How much risk are you really taking?
Risk is a challenging subject in the trading and investment world. Depending on who you ask, it can mean a variety of different things. Some consider risk synonymous with volatility, i.e. the more an asset’s price moves, the riskier it is. Others look at it as the probability of losing money. Still others define it as the inherent uncertainty that exists in the world.
Moreover, it’s impossible to measure precisely; the best we can do is get a rough feel for our the…