Financial price risk

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Financial price risk

The chance there will be unexpected changes in a financial price, including currency (foreign exchange) risk, interest rate risk, and commodity price risk.

Financial Price Risk

The risk that the price of something will change significantly such that it results in a loss. For example, if one has an investment in a foreign currency and that currency changes in value, it may adversely affect the investment's value. Likewise, if one holds a long position in a commodity and the price crashes for any reason, one may take a loss. Financial price risk can be mitigated by any number of hedging strategies, but these almost always limit returns.