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risk on
What does risk on mean?
'Risk on' describes an environment in which investors are optimistic and willing to buy riskier, higher-yielding assets like equities. Money flows out of safe havens toward growth.
"With the rate cut, it's risk on and equities are ripping."
Origin
Trader shorthand for turning risk appetite 'on'; contrasted with 'risk off.'
Frequently asked questions
What does 'risk on' mean?
It describes a market mood where investors are optimistic and willing to buy riskier, higher-yielding assets like equities, moving money out of safe havens.
What causes a risk-on environment?
Positive catalysts like rate cuts, strong economic data, or easing uncertainty tend to flip sentiment risk on and lift stocks.
What's the opposite of risk on?
'Risk off' — when fear drives investors toward safe assets like bonds, gold, or the dollar.
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