Risk Capital

What Does Risk Capital Mean?
The money that a person allocates to investing in high-risk securities.

Investopedia explains Risk Capital
Basically, this is capital that you can lose without having to sleep on the streets. Investors who speculate in options or futures contracts should only use risk capital.

Filed Under: Buzz Words, Derivatives, Derivatives, Futures, Options

Related Terms

Futures
Morganization
Options
Return On Risk-Adjusted Capital - RORAC
Risk
Risk Management
Speculative Capital
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