DEFINITION of 'Price Risk'
The risk of a decline in the value of a security or a portfolio. Price risk is the biggest risk faced by all investors. Although price risk specific to a stock can be minimized through diversification, market risk cannot be diversified away. Price risk, while unavoidable, can be mitigated through the use of hedging techniques.
INVESTOPEDIA EXPLAINS 'Price Risk'
Price risk also depends on the volatility of the securities held within a portfolio. For example, an investor who only holds a handful of junior mining companies in his or her portfolio may be exposed to a greater degree of price risk than an investor with a welldiversified portfolio of bluechip stocks. Investors can use a number of tools and techniques to hedge price risk, ranging from relatively conservative decisions such as buying put options, to more aggressive strategies including shortselling and inverse ETFs.

Systematic Risk
The risk inherent to the entire market or entire market segment. ... 
House Money Effect
The tendency for investors to take more and greater risks when ... 
RiskOn RiskOff
An investment setting in which price behavior responds to, and ... 
Commodity Price Risk
The threat that a change in the price of a production input will ... 
Commercial Hedger
A corporation that purchases futures to control its costs. When ... 
Granular Portfolio
A type of portfolio that is well diversified across a wide variety ...

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