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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.
Related Links
- Margin Trading - Find out what margin is, how margin calls work, the advantages of leverage and why using margin can be risky.
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- Options Basics Tutorial - An introduction to the world of options, covering everything from primary concepts to how options work and why you might use them.
- Futures Fundamentals: How To Trade - Before taking the plunge into trading futures, you must assess the amount of risk you are willing to take.
- Introduction To Gemology - This investment alternative may seem glamorous, but it's not for the faint of heart.
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