Risk Capital

Definition - What does Risk Capital mean?

Risk capital is money that a person is prepared to trade for a financial gain. Ideally, risk capital is money that a person can lose without suffering any real financial hardship. It is often suggested that people trying out forex trading only use risk capital because of the risks involved. Risk capital is also called speculative capital.

ForexDictionary explains Risk Capital

Risk capital is basically the money you are willing to part with for a shot at making more money. There are many ways to calculate how much of your investment dollars you should allocate as risk capital. If you are having trouble covering your mortgage (or rent), then you may not be in the position to risk your money on the financial markets.
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