Flat price risk

Flat price risk

Taking a position either long or short that does not involve spreading.

Flat Price Risk

The risk to an investment one takes without taking an offsetting position. For example, if one buys Johnson & Johnson stock at $60 per share without hedging at all, the flat price risk is the possibility that J&J will drop below $60. See also: Spread, Straddle.
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15pm EST that could help alleviate some of the flat price risk for the US refining industry, according to some oil industry participants.