Asymmetrical Risk/Reward
An Asymmetrical Risk/Reward is an imbalance between the risk and the reward.
For information about the application of asymmetric risk/reward and asymmetric risk/reward investment opportunities visit ASYMMETRY®
A positive asymmetrical risk/reward occurs when the potential or realized reward is greater than the potential or realized loss.
Investors Seeking Asymmetric Returns are looking for a position with more potential for profit, less potential for loss.
When we speak of asymmetric risk/reward, we typically mean it is a positive one. But, an asymmetric risk/reward can also be negative.
Asymmetric risk is the risk an investor faces when the gain realized from the move of an underlying asset in one direction is significantly different from the loss incurred from its move in the opposite direction.
Asymmetric reward is the reward an investor may achieve when the gain realized from the move of an underlying asset in one direction is significantly different from the loss incurred from its move in the opposite direction.
See also:
Asymmetric Return Distribution
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