risk off
A market mood favoring safe, defensive assets.
Definitions
'Risk off' describes an environment in which fear or uncertainty drives investors to safer assets such as government bonds, gold, or the US dollar. Riskier assets are sold.
risk off In A Sentence
Origin & Usage
Trader shorthand for turning risk appetite 'off'; the counterpart to 'risk on.'
People Also Ask
What does 'risk off' mean?
It describes a market mood where fear or uncertainty drives investors into safer assets like government bonds, gold, or the US dollar, while riskier assets get sold.
What triggers a risk-off move?
Shocks like geopolitical headlines, weak economic data, or crises tend to flip sentiment risk off, prompting a flight to safety.
What's the opposite of risk off?
'Risk on' — when optimism drives investors toward riskier, higher-return assets like equities.
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