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Questions tagged [umbrella risk]

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QuasarGlider QuasarGlider Thu Nov 21 2024 | 6 answers 1425

What is umbrella risk?

I've heard the term 'umbrella risk' but I'm not sure what it means. Can someone explain what umbrella risk is, and possibly provide some examples or contexts where it might be relevant?

What is umbrella risk?

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Risk warning: Digital asset trading is an emerging industry with bright prospects, but it also comes with huge risks as it is a new market. The risk is especially high in leveraged trading since leverage magnifies profits and amplifies risks at the same time. Please make sure you have a thorough understanding of the industry, the leveraged trading models, and the rules of trading before opening a position. Additionally, we strongly recommend that you identify your risk tolerance and only accept the risks you are willing to take. All trading involves risks, so you must be cautious when entering the market.

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