The value of investments can fall as well as rise, and you may get back less than you invested. Past performance is no guarantee of future results.

Risk rating definition

This is the way risks of a particular instrument is evaluated and ranked.

Risk rating definition

This is the way risks of a particular instrument is evaluated and ranked.

Before making an investment, a risk assessment should be carried out to identify the potential downsides to the investment, to gauge how risky it is. The most prominent users of risk ratings are ratings agencies like Moody's, which place ratings on things such as company debt.

Risk ratings can vary in detail. This can be from using simple methods like Low, Medium or High, or more complex ratings that involve a series of codes.

A - B - C - D - E - F - G - H - I - J - K - L - M - N - O - P - Q - R - S - T - U - V - W - Y

See all glossary trading terms