ForexAll marketsIntermediate

Risk Off

a.k.a. Risk-off

A market mood where fear dominates and money flows out of risky assets into safe havens.
In plain English

A market mood where fear dominates and money flows out of risky assets into safe havens.

Risk off describes a day, or a stretch, when traders are in defensive mode. Stocks drop, commodity currencies like the AUD and NZD slide, and money crowds into the US dollar, yen, Swiss franc, gold and government bonds.

Triggers include bad economic surprises, financial stress, wars and pandemics. Its opposite is risk on.

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