Opportunity loss and Opportunity risk: Difference between pages

Revision as of 15:22, 8 March 2017

The risk of suffering an opportunity loss.

Sometimes known as 'regret risk'.

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+The risk of suffering an opportunity loss.
-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'.
-For example, there is always a risk of opportunity losses when we use a fixing instrument to effectively lock in a (committed) market price.
-We are effectively locked in to the predetermined and committed market price, instead of being free to take advantage of actual market rates (if they turn out to be more favourable).
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-Any loss resulting from a failure to take advantage of an opportunity.
 == See also ==
-* [[Fixing instrument]]
+* [[Opportunity loss]]
-* [[Opportunity risk]]
 * [[Regret risk]]