Limited risk

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 ?
Nadex is the first and largest CFTC-regulated online exchange in the US offering binary options and spreads to individual traders seeking low-cost, limited risk ways to participate in the markets.
Global Banking News-September 15, 2015--Iraqi central banker sees limited risk of devaluation
PYXmarkets introduces inexperienced traders to the market with limited risk, while professional traders have all the essential tools needed to maximise trading opportunities.
Presenters included Marsh Limited risk engineer Andrew Pilgrim and Ithmaar Development Company project manager Rizwan Mumtaz.
The unit carries a safety benefit because there is a limited risk of sparking, unlike gas or electric pressure washers.
A look at the hourly chart does show a potential buying opportunity with limited risk.
During a joint conference call of the National Association of Insurance Comissioners' Executive and Plenary Committees, the full body of the NAIC has approved enhanced disclosure requirements for insurers that utilize reinsurance with limited risk transfer features, also known as finite reinsurance.
11 attacks, there was limited risk other than in group life and certain select individual life segments such as corporate-owned and bank-owned life insurance, Colligan said.
Initially, for example, physician providers of prepaid medical care were asked to take limited risk on the professional component of fees.
The award-winning CFD trading and spread betting provider is helping traders to reduce their exposure by offering limited risk accounts.
Bankers said that the new products are in high demand because of the limited risk of attracting the attention of foreign governments.
Through City Index, spread bettors can choose a Limited Risk Account.