Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

Systematic risk is the risk that the entire financial system, rather than a single stock or industry, will be affected by a particular event or series of events.

Systematic risk definition

Systematic risk is the risk that the entire financial system, rather than a single stock or industry, will be affected by a particular event or series of events.

This occurred during the global financial crisis of 2008 where subprime debt issues and the subsequent collapse of major financial institutions, such as Lehman Brothers, caused stock markets to drop worldwide.

Other examples of systematic risk can include natural disasters, war and major political or regulatory change.

 

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