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imported>Doug Williamson |
imported>Doug Williamson |
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| | The risk of suffering an opportunity loss. |
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| The worsening of a financial position when effectively 'locked in' to a course of action or to a particular fixed price or rate, compared with the alternative which could have been followed without the lock-in.
| | Sometimes known as 'regret risk'. |
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| For example, there is always a risk of opportunity losses when we use a fixing instrument to effectively lock in a (committed) price.
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| We are effectively locked in to the predetermined and committed price, instead of being free to take advantage of actual market rates (if they turn out to be more favourable).
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| This type of loss is also sometimes known as an 'opportunity cost'.
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| Any loss resulting from a failure to take advantage of an opportunity.
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| This type of opportunity loss can result from analysis paralysis, other factors, or both.
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| == See also == | | == See also == |
| * [[Analysis paralysis]]
| | * [[Opportunity loss]] |
| * [[Fixing instrument]]
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| * [[Opportunity cost]] | |
| * [[Opportunity risk]]
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| * [[Regret risk]]
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Revision as of 06:47, 2 May 2016
The risk of suffering an opportunity loss.
Sometimes known as 'regret risk'.
See also
