Definition
Market risk, also known as systematic risk, is the possibility of an investor experiencing losses due to factors that affect the overall performance of the financial markets in which they are involved.
Why it matters (in Poovi’s context)
The video explicitly mentions ‘market risk’ as a factor that trading strategies must account for, highlighting its relevance to AI trading.
Key properties or components
- Interest rate risk
- Equity risk
- Currency risk
- Commodity risk
Contradictions or debates
None.