beta
/ˈbeɪtə/
a measure of how much a security moves relative to the broader market; a beta above 1 means more volatile
beta in a sentence
“The utility stock's beta of 0.4 meant it moved much less than the market.”
Origin of beta
Greek letter β (beta), used in finance to represent systematic market risk
Related Words
P/E ratio
price-to-earnings ratio — the price of a stock divided by its annual earnings per share
short squeeze
a rapid price increase that forces short sellers to buy back shares at a loss, accelerating the rise
market order
an instruction to buy or sell a security immediately at the best available current price
diversification
spreading investments across different assets, sectors, or geographies to reduce risk
drawdown
the peak-to-trough decline in a portfolio's value during a specific period
risk-reward ratio
the expected profit of a trade compared to its potential loss, used to evaluate trade quality