Risk aversion refers to when traders unload their positions in higher-yielding assets and move their funds in favor of safe-haven currencies. This normally happens in times of uncertainty and high volatility, a so-called “risk-off” environment.
In turn, periods of perceived low financial risk encourage investors to take risk, therefore creating a “risk-on” situation. The following instruments are excellent barometers of market sentiment that can indicate higher or lower risk taking depending on their performance.
In turn, periods of perceived low financial risk encourage investors to take risk, therefore creating a “risk-on” situation. The following instruments are excellent barometers of market sentiment that can indicate higher or lower risk taking depending on their performance.
Trade active:
Trade closed: stop reached: