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.
References in periodicals archive ?
"The new capital has limited risks of earthquakes, volcanoes, tsunamis, floods, soil erosions and forest fires," Widodo said at the State Palace in Jakarta on Monday.
Moreover, Al-Ghaith stressed KFH's keenness on improving its investment portfolio through such rewarding properties so as to achieve better returns to shareholders and depositors with limited risks and according to in-depth study of the market developments and trends.
As such, the issuer faces limited risks other than its exposure to its parent, upon whom it is entirely dependent for repayment of its obligations, and country risk.
The improvement in cardiovascular health that results from quitting smoking far outweighs the limited risks to cardiovascular health from the modest amount of weight gained after quitting, reports a National Institutes of Health-funded community study.
We think delaying a decision would be more damaging than the limited risks that are associated with a partial privatisation.
credit-rating agency cited IYBank's moderate investment requirements and limited risks involving the banking business as reasons for its readiness to leave the ratings and outlook unchanged.
They are pouring cash into a range of VCTs, attracted by the generous tax breaks on offer - as well as the thrill of playing the stock market with limited risks.
Similarly, research funding requests are usually viewed as selling tools and therefore emphasize the limited risks involved in an effort to maximize the chances of obtaining funding authorization.
With solar parks like this we are continuing to diversify our portfolio with sustainable investments characterised by limited risks and good returns.
The defined price action provides an opportunity for high frequency traders to execute their strategies with limited risks.Key Technical Levels The AUD/USD has traded within a 150 pip range over the past week between 0.8550-0.8700 as we have seen bullish momentum wane after the pair failed to break above the 0.8700 level.