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General TradingR
Risk Sentiment
The overall attitude of market participants toward risk at any given time, reflecting whether traders are inclined to pursue risky assets (risk-on) or seek safety (risk-off). It is influenced by economic data, geopolitical events, and central bank policies.
Example
“Risk sentiment turned sharply negative after the CPI print came in hotter than expected, with equities selling off and the VIX spiking 25% in a single session.”