Flat price risk

Flat price risk

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

Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.

Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved