HomeDefinitionsCompareDebt Downside riskThe financial definition for Downside risk:The risk that a security will decline in value including the implications of risk. Similar MatchesDownside ProtectionDownside ProtectionGenerally used in connection with covered call writing, this is the cushion against loss, in case of a price decline by the underlying security, that is afforded by the written call option. Alternatively, it may be expressed in terms of the distance the stock could fall before the total position becomes a loss (an amount equal to the option premium), or it can be expressed as percentage of the current stock price. Click to compare definitions of Downside risk Click to view definitions beginning do |