Risk
What is risk?
The chance that an investment loses value, and how much it could lose.
Explained in more detail
Risk is not only about how likely a fall is, but how badly a fall would affect your actual life. Money you need next year should not carry the same risk as money you will not touch for twenty years.
An example
For instanceA single small company carries more risk than an index fund holding 50 companies.
Why this matters to you
You will meet this word in broker apps, company results and market news. Knowing what it means is not the goal on its own. The goal is being able to judge whether a number is good or bad for the investment you are actually holding.
On AlphaVik, any time risk appears in a view or a lesson, you can hover or tap the word and this explanation comes with it. You never have to leave the page to look something up.