Price volatility
Earnings and news can trigger sharp moves or trading halts. Historical volatility does not cap future loss.
RISK LIBRARY
Understand loss paths before estimating returns
A strong company can still produce a loss through excessive price, low liquidity, currency moves or unexpected filings. Separate business risk from position risk.
LOSS PATHS
Six risks and how to check them
Review company, market and account levels because several risks can occur together.
Stock and sector concentration
Several holdings can still share exposure to one industry, country or rate factor. Map overlapping revenue and risk drivers.
Currency risk
A foreign share can rise while KRW appreciation reduces converted return. Calculate company currency exposure and investor conversion exposure separately.
Liquidity and execution risk
During thin or stressed trading, a displayed price may not be available for your order size. Review spreads, turnover and market-order risk.
Margin, credit and derivatives
Borrowing magnifies small moves and forced-sale risk. Avoid structures whose interest, margin, maturity and worst loss you do not understand.
Filings, policy and trading interruption
Accounting revisions, regulation, litigation, delisting procedures and exchange failures can limit reaction. Review official rules and account terms.