The Forex Market Explained: Risk-on, Risk-off

March 20, 2020 at 16:01 by K. Prabhu

A risk-on sentiment indicates a positive mood that the traders have about the market. The investors are optimistic and interested in taking more risks in investing their money. They like to invest in assets that give them a higher yield. This includes assets like stocks, commodities, and high beta currencies like the Canadian dollar, New Zealand dollar, etc.

A risk-off sentiment indicates a negative mood of the investors. This indicates uncertainty in the markets and traders are feeling worried. This causes the investments to flow towards the safe haven assets.

During the times of financial crisis, the Japanese yen is considered as a safe haven asset. So, focus on investing on high beta currencies, when the market is dominated by a risk-on sentiment. When the market is dominated by a risk-off sentiment, then invest your money on safe haven currencies.

Tags: Forex strategy, Forex trading, Forex video, Risk on Risk off

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The Forex Market Explained: Risk-on, Risk-off

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