What is Risk-On / Risk-Off?

A market environment where investors either seek out risk (Risk-On) or flee to safety (Risk-Off).

In-Depth Explanation

In Risk-On, stocks and high-yield currencies (AUD, NZD) rise. In Risk-Off, Gold and safe-haven currencies (USD, JPY) rise.

"The geopolitical news caused a sudden shift to a Risk-Off sentiment."

Knowing the terms is just the start. Learning how to apply them is where the edge is found.