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Limited Risk

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Limited risk
The risk inherent in options contracts, which is much lower than that of a futures contract, which has unlimited risk. The maximum loss in buying a call option, for example, is the premium paid for the option.

Limited Risk
The risk on an investment in which the risk has a ceiling. That is, when an investor enters a position with limited risk, he/she is aware of the maximum amount he/she could possibly lose. Limited partners have limited risks on their investments as they cannot lose more than they originally invested. Likewise, buying a stock carries limited risk as the investor cannot lose more than the buy price of the stock. See also: Unlimited risk.


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You took an intelligent position size that limited risk.
Options give you unlimited profit potential and limited risk.
There's limited risk, but it will be four or five years before there's any value for Fiat shareholders," said Ellinghorst.
 
 
 
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