Unlimited Risk
The risk of an investment that has unlimited downside potential.
Investopedia Commentary
Examples of investments with inherent unlimited risk include short positions and futures contract trading. In short selling or trading futures contracts, the potential to lose more than your initial investment is theoretically infinite.
Related Links
To Limit or Go Naked, That Is the Question
Margin Trading Tutorial
Short Selling Tutorial
See also: Beta, Eat Well, Sleep Well, Futures, Limited Risk, Return, Risk Capital, Short Selling, Systematic risk, Unsystematic Risk