Risk-on / risk-off
The market's overall risk appetite: in risk-on, stocks, crypto and commodity currencies (AUD, NZD) get bought; in risk-off, the dollar, yen, franc and bonds are preferred.
Understanding the regime ties moves in different markets into a single story: USDJPY falling while indices drop is a typical risk-off signature.
VIX, bond yields and credit spreads are regime indicators. Regime shifts usually begin with a macro shock or a central bank surprise.
Related terms
Where it appears in the guides
Guides whose text uses this term; most frequent first.