Holding_period_risk

Holding period risk

Holding period risk

Add article description

Holding period risk is a financial risk that a firm's sales quote giving a potential retail client a certain time to sign the offer for a commodity, will actually be a financial disadvantage for the offering firm since the market price's on the wholesale market has changed. The risk is usually reduced by a risk premium being added onto the wholesale price of a commodity by the offering firm.

Holding period exposure. Let us assume a firm offers a contract with a given wholesale price plus an additional risk premium at a given time.

An alternative and less general definition is: Holding period risk is the risk, while holding a bond, that a better opportunity will present itself that you may be unable to act upon.[1]

References

  1. [1]
    "Glossary: Holding period risk". Interactive Brokers LLC. Retrieved 2015-12-14.
Stub icon

This finance-related article is a stub. You can help Wikipedia by expanding it.
Share this article:

This article uses material from the Wikipedia article Holding_period_risk, and is written by contributors. Text is available under a CC BY-SA 4.0 International License; additional terms may apply. Images, videos and audio are available under their respective licenses.