Tuesday, November 23, 2010

Am getting this risk on/off thing?

Laymen have trouble with trader terms because traders often leave out the passive or active sense,  or the direction of the trade, they just name an event.   One of the reasons I get sign dyslexic.

OK, so today there is risk to run from, Nuklorea is shooting off artillery.   Equities are down, the dollar is up, people run to safety and the yield curve get flat or steep?  Yields are dropping across the curve, so the curve gets flatter.

So, is that the definition? Do we say this is risk on because there is visible danger, or is it risk off because the market is turning away from the danger?  See why I am sign dyslexic?

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