A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- Risk ToleranceHow much investment ups and downs you can handle emotionally and financially without changing your plan.
- Standard DeviationA statistic showing how widely an investment's returns swing around their average, used to gauge risk.
- BetaA measure of how much an investment tends to move compared with the overall market.
- Bear MarketA period when investment prices fall 20 percent or more from recent highs and confidence tends to be low.
- DiversificationSpreading your money across many different investments so a drop in any single one does less damage.
- VIX (Volatility Index)A market index that tracks expected volatility, often called the market's fear gauge.
More in Investing
Plain-English education — not personalized legal, tax, or investment advice.