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To reduce this type of risk, such a trader may decide to hedge in financial market futures or options, thereby assuming margin call risks for both commodities and currencies.
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Both offer what they call risk-free trials of their products.
What we've been working on in earnest over the past two years is what we call risk-based security.
One is call risk.
Be attentive to call risk.
One downside is a huge call risk.
Call risk explains a lot of it.
But many of these bonds have call risk.
The share price's 40% discount from redemption value almost entirely insulates you from call risk.
Hence, inflation protection is free, and the call risk is a positive.
The downside is that muni bonds almost always have call risk.
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