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Market risk

Market risk is the risk that the value of your investment will decrease due to moves in market factors. The four standard market risk factors include: Sometimes, a fifth risk factors is also considered: Market risk is typically measured using a Value at Risk methodology. Market risk can also be contrasted with Specific risk which measures the risk of a decrease in one's investment due to a change in a specific industry or sector, as opposed to a market-wide move.

Other types of risk include: Credit risk, Liquidity risk, Operational risk, Legal risk.