Headline Risk

Headline risk is exactly what it says on the tin – the likelihood of a news story/headline influencing and disrupting the price of a stock or overall market sentiment.

Headlines can come from traditional media sources such as television, newspapers, and radio or even more modern media streams such as social media.

The nature of the headline can take on different forms as the factors affecting prices and market dynamics can be political, financial, economic or be related to cultural and even weather developments.