What is risk level?

Risk level refers to the amount of risk a trader is willing to take on. Every investment involves some degree of risk, but some are considered to be more and less risky than others.

Generally, a high risk level can mean a trader is more likely to be overexposed, or is investing in a risky asset, making it more likely they will lose the value of their investment.

The degrees and the number of variable risk factors an investor is willing to take on raises their risk level. Every trader has their own level of risk they are comfortable with, so this will depend on a trader’s strategy and objectives.