Over 700 finance terms, Shmooped to perfection.
Risk in the system. Like... if you own a bunch of stocks and the whole system crashes (i.e. the market goes down and not in the good way), that's just risk you take on if you are long the market. To hedge that risk, you can find ways to be short the market - i.e. buy puts or collect some cash premiums by selling calls. R-rated note: Systematic risk applies to risk of the market going UP as well - if you're short and it takes off, then click here.http://www.job-applications.com/united-states-postal-service-job-application/