What is Price Risk?

Price risk refers to the risk of changes in the market price of an item.

Price risk

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Price risk refers to the risk of changes in the market price of an item.
Chinese name
Price risk
Definition
Item market price risk
Application area
market
Cause
Changes in the market price of goods
Price risk, also known as interest rate risk, refers to the impact of changes in market interest rates on government bonds on bond prices. In general, bond prices are inversely proportional to changes in interest rates. When interest rates rise, bond prices fall. The longer the bond matures, the greater the price risk it faces. The relationship between interest rate risk and reinvestment risk is the same. Reinvestment risk is also the risk that bondholders face due to changes in market interest rates. [1]
Price risk refers to the risk caused by changes in the price or value of derivatives caused by changes in the prices of underlying assets.
Price risk refers to the risk of changes in the market price of an item.

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