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Glossary entry · Trade-offs

Risk

Definition

In investing, the probability and magnitude of losing money. Often used loosely as a synonym for volatility, though they aren't the same thing — risk includes the possibility of permanent loss, not just temporary swings.

Example

A single tech stock has higher risk than a global ETF — the company can fail, but a global market won't.

From the lessons
Lesson · 04

Risk

This term appears in a longer lesson, where the idea gets the proper treatment with examples and a working visualization.

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