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Trading glossary · fundamentals

event risk

The chance that big news suddenly makes price jump much further than normal in a few moments.

The fuller meaning

The chance that news moves price far beyond its normal range in moments. For scheduled events traders cut size, close positions beforehand or wait for the first reaction to settle; for unscheduled shocks the only protection is a position size that survives a gap.

event risk.

Related words

adoption · analyst estimate · balance sheet · Bank of Japan · beat · bond · book value · business cycle · cash flow · central bank