Unlimited Risk

Unlimited Risk

The risk that one's loss on an investment will be larger than the amount one originally invested. For example, in short selling one will lose money if the short sold security rises in price. Because the potential rise in price is theoretically infinite, one may lose much more than one invests. Likewise, a general partner of a company has unlimited liability, meaning that in the event of bankruptcy he/she must pay all debts the company incurs regardless of how much he/she invested in it. See also: Limited liability.
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Short sales may help hedge against general market risk to the securities held in the portfolio but theoretically present unlimited risk on an individual stock basis, since the Fund may be required to buy the security sold short at a time when the security has appreciated in value.
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Long straddle provides opportunities for unlimited rewards and limited risk, whereas short straddle offers limited rewards and unlimited risk.
Saliba discusses which strategy to employ, the nuances of each, how to manage the position, when to exit, and how to use spread strategies that offer limited or unlimited risk.
Federated Prudent Bear Fund regularly makes short sales of securities, which involves unlimited risk including the possibility that losses may exceed the original amount invested.
Short sales, selling a security a fund does not own in anticipation that the security's price will decline, theoretically presents unlimited risk on an individual stock basis, since a fund may be required to buy the security sold short at a time when the security has appreciated in value.
Short selling involves unlimited risk including the possibility that losses to the Fund may exceed the original amount it invested.
Unlike the large, unlimited risk products offered by traditional futures exchanges, Nadex contracts are not margined - they are fully-paid upfront and they have limited risk/reward profiles that are attractive to both start-up and seasoned traders.
The funds regularly make short sales of securities, which involve unlimited risk including the possibility that losses may exceed the original amount invested.
There are too few straightforward, affordable opportunities - and too many trading vehicles have unlimited risk of loss.
Short sales, selling a security the Fund does not own in anticipation that the security's price will decline, theoretically presents unlimited risk on an individual stock basis, since the Fund may be required to buy the security sold short at a time when the security has appreciated in value.