CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.1% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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What is holding period risk?

Holding period risk

Holding period risk refers to the risk, whilst holding a bond, that a better opportunity will come around that you may be unable to act upon. The longer a bond's term, the more likely that a more attractive investment opportunity may arise.

Where have you heard about holding period risk?

You may have come across this term after investing in a security that you don't intend to sell on for a while. Generally, a holding period is considered long term when the investment is held for longer than one year.

What you need to know about holding period risk.

An example of a holding period risk is a firm giving a potential retail client a sales quote that is active for a certain time. With the potential client having a certain time period in which to sign the offer for the commodity, the offering firm puts itself at a financial disadvantage since the market's price on the wholesale market may change. This financial risk is usually reduced by the offering firm placing a risk premium onto the wholesale price of a commodity.

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