Market risk is the risk of losses in positions arising from movements in market prices. Some market risks include:
- Equity risk, the risk that stock or stock indexes (e.g. Euro Stoxx 50, etc. ) prices and/or their implied volatility will change.
- Interest rate risk, the risk that interest rates (e.g. Libor, Euribor, etc.) and/or their implied volatility will change.
- Currency risk, the risk that foreign exchange rates (e.g. EUR/USD, EUR/GBP, etc.) and/or their implied volatility will change.
- Commodity risk, the risk that commodity prices (e.g. corn, copper, crude oil, etc.) and/or their implied volatility will change.
Read more about Market Risk: Measuring The Potential Loss Amount Due To Market Risk, Use in Annual Reports of U.S. Corporations, Risk Management
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