User:Rzyzkc/Risk on Risk off

Risk on Risk off (RORO) is a concept within stock trading that describes the current market sentiment as either Risk on or Risk off.

During a market sentiment of 'Risk on', the market is optimistic and more willing to take risk in exchange for possibly better returns. At this time there will be a greater interest in shares and commodities. When the market sentiment is Risk off, there is pessimism in the market and it will favour perceived lower risk investments such as the US$. The RORO index was developed by HSBC and is based on research they conducted with collaborators at University of Oxford (D. J. Fenn et al, Physical Review E, 2011).

Category:Stock exchanges