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Limited risk

The financial definition for Limited risk:

The risk inherent in options contracts, which is much lower than that of a futures contract, which has unlimited risk. The maximum loss in buying a call option, for example, is the premium paid for the option.




Similar Matches

Cost of limited partner capital

Cost of limited partner capital
The discount rate that equates the after-tax inflows with outflows for capital raised from limited partners.


Income limited partnership

Income limited partnership
A limited partnership whose main goal is income generation, e.g., real estate, oil equipment.


Limited company

Limited company
A form of business commonly used in the U.K. comparable to incorporation in the U.S.


Further Suggestions

Limited discretion
Limited liability
Limited liability instrument
Limited partner
Limited partnership
Limited price order
Limited warranty


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Limited risk
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