What is "Risk On" and "Risk Off" in Forex Market?

5/28/2020 10:22:00 AM

Risk On

It basically refers to the market sentiment optimistic about economy where investors are taking risk that is why usually, you would notice high risk assets such as stocks and commodities rising and safe-haven assets such as the Japanese yen and gold falling. Simple means Risk on - Investors are taking risk

Risk Off

When market participants become pessimistic about the outlook for the economy or unexpected news is published that is highly negative or raises uncertainty about the future, market participants will want to sell risky assets and buy safe-haven assets instead that's called Risk Off. Simple means Risk off - Investors are not taking risk
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