What is Rio's trade?

Rio trade is a somewhat funny description of certain companies or investors who actually lack calculations of cold heads because of the circumstances that surround such decisions. The actions usually result from despair from such entities when they face massive losses in connection with the sum of their investment. The use of RIO store in this context would be that these entities would make the last attempt to remedy their investment by resorting to certain types of trades that would probably not think if everything was well investment. Risk trade is usually focused on the hope that there will be a miracle, and if the trade shows up as a success, they get back their lost investments.

Most investors would not think about the Rio trade, if it wasn't absolutely necessary, it was really despair, and they really needed a break that would prove to be a panaceaTheir current inedible situation in terms of their huge losses. The Illustrations of the use of the RIO store can be seen in the case of an investor who suffers from a loss of more than 90 percent of his investment, either through incorrect calculations of it or because of the circumstances outside the individual control. For example, an incorrect forecast on the future of some industries or markets could cause a person to invest a significant amount of money on that particular market or industry. When the investor discovers that the indicators were bad and that the investment had suffered losses, he was looking for the fastest and simplest way to get losses to keep creditors at bay.

Part of the effort to avoid the negative consequences of loss would be to engage in a very risky trade or Rio trade, which may seem to have a source Chance in success. In a sense, it is a kind of trade with all or nothing, and is therefore referred to as Rio trade. Probably, in the past when investors get involvedIli in unsuccessful investments, usually fled to Rio de Janeiro in their desperate effort to prevent any harassment from creditors who would certainly come to knock on the door in an effort to collect their money.