Risk-on and risk-off

Updated 2026-09-20

Definition

Phases of risk appetite (people buy stocks and risky currencies) and aversion (they seek havens).

Why it matters

Understanding the phase gives a compass for moves between pairs: AUD and NZD tend to suffer in risk-off, the yen and franc to strengthen.

Practical example

Stock market crash: AUD/JPY falls, USD/CHF often falls.

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Full glossary

Educational content, not financial advice. Trading involves risk.