Holding period risk

In this article, we are going to delve into the exciting world of Holding period risk. It is a topic that has captured the attention of millions of people throughout history, arousing increasing interest today. Holding period risk has been the object of study, debate and reflection in different areas, from science to popular culture. On this occasion, we will delve into its various facets, exploring its origins, characteristics and its impact on the contemporary world. It will be a fascinating journey through Holding period risk, discovering its relevance and meaning in our current society. Get ready to explore this exciting topic that has captivated so many!

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.

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.

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.

References

  1. ^ "Glossary: Holding period risk". Interactive Brokers LLC. Retrieved 2015-12-14.