Market risk concerns the risk that a trading or investment portfolio's value will decrease due to changes in values of market risk factors. There are four standard market risk factors that include interest rates, foreign exchange, stock prices, and commodity prices. These factors need to be understood fully before engaging in a analysis of a particular market, such as the Euro Market(s). Europe is quite a different trading arena than, say, North America, because it consists of far more independent countries that have their own independent economies. This and other considerations must be taken into account when assessing the above risk factors within this specific economy.
