RISK ON/RISK OFF

C H E A T S H E E T

WHAT IS RISK-ON & RISK-OFF?

• Price behaviour is driven by investor risk tolerance.

• Risk-on & risk-off refer to changes in risk sentiment.

• RISK-ON: When stocks are trending higher, traders tend to buy high yield currencies.

• RISK-OFF: When stocks are trending lower, traders tend to buy low yield currencies.

RISK-ON / RISK-OFF CHEAT SHEET

THE CARRY TRADE

1. Borrow low yield currencies.

2. Sell low yield currencies.

3. Buy high yield currencies.

Get your free access today and join our trading room
The information provided within this PDF is for educational purposes only.