Risk management is an absolutely critical component to any trader's overall strategy. Learn how to take appropriate risks that won't let you lose everything if a trade goes bad.

Explore Risk Management

investor looking at portfolio information
Portfolio Diversification Done Right
Margin Call
Margin Call: What It Is and How to Meet One with Examples
Stock market digital board with graphs and numbers.
What Factors Are Taken Into Account to Quantify Credit Risk?
Young woman analyzing computer data
Stop Hunting: Definition, How Trading Strategy Works, and Example
Calculating the Equity Risk Premium
Risk: What It Means in Investing, How to Measure and Manage It
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Default Premium
Unsecured Creditor Defined, Types, vs. Secured Creditor
A collection of globes
Geographical Diversification
How to Diversify With Index Funds
A ticker for the stock market
Systemic Risk vs. Systematic Risk: What's the Difference?
Man Doing His Accounting, Financial Adviser Working
Low-Risk vs. High-Risk Investments: What's the Difference?
Counterparty Risk: Definition, Types, and Examples
Downside Risk: Definition, Example, and How To Calculate
Balancing Risk
Immunization: Definition, Investing Strategies, and Examples
Online financial analysis on a computer monitor.
Risk Analysis: Definition, Types, Limitations, and Examples
What Is Risk Neutral? Definition, Reasons, and Vs. Risk Averse
How to Use Monte Carlo Simulation With GBM
Businessman checking stock market on digital tablet and a desktop computer with stock exchange graph on screen. Financial stock market. Analyzing data in office background.
What a Certainty Equivalent Is, What It Tells You, How to Use It
Risk Control: What It Is, How It Works, Example
Risk Parity: Definition, Strategies, Example
An image of financial tables graphs numbers for work business and economics.
How is CAPM represented in the SML?
What Is the Parametric Method in Value at Risk (VaR)?
Cluster Analysis
The 10 Riskiest Investments
How do I interpret a Security Market Line (SML) graph?
An asset statement showing diversification and pie chart with a pen.
Diversification: It's All About (Asset) Class
How to Select and Build a Benchmark to Measure Portfolio Performance
Financial Data Analyzing
How Do I Unlever Beta?
Transaction Exposure: Definition, Example, Hedging Strategies
Investor reviews stock market data on several monitors
Risk-Based Haircut
Investors review asset allocation charts and stock charts
90/10 Strategy: Definition, How It Works, Examples
Optimize Your Portfolio Using Normal Distribution
Gambling Income
Midsection Businessmen Analyzing Charts on Laptop in Office
How the Pros Decide When to Buy, Sell, or Hold Stock
World reserves of foreign exchange and gold in billions of US Dollars (March 2009)
Examples of Asset/Liability Management
Stockbroker analyzes the financial chart.
Financial Exposure: Definition, How It Works, Hedging and Example
Introduction to International CAPM
Cubes form the word risk with a hand turning cube from high to low risk.
Risk Assessment Definition, Methods, Qualitative Vs. Quantitative
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Examples of Inherent Risk
Translation Risk
Rollover Risk
Rollover Risk: Definition, How It Works, and Example
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Maturity Gap
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Common Methods of Measurement for Investment Risk Management
Incremental Value at Risk
Stock Market Chart
How Do You Calculate the Sharpe Ratio in Excel?
The True Risks Behind Preferred Stock ETFs
Investment Pyramid: Definition and How Allocation Strategy Works
How to Use Market Risk Premium for Expected Market Return
Risk-Return Tradeoff: How the Investment Principle Works
Pen and chart
Crisis Management: Definition, How It Works, Types, and Example
Two business people calculate their business in the office.
Provision for Credit Losses (PCL): Definition, Uses, Example
Systematic Risk Definition, With Examples
A financial analyst pointing with a pen a monitor showing charts.
How Does Market Risk Affect the Cost of Capital?
A businessman analyzing a screen with stock market graph.
How Investment Risk Is Quantified
Why Investing in Russia Is Risky Business
Jurisdiction Risk
Risk Management
Determining Risk and the Risk Pyramid