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tail risk

tail risk
 n.— «“Tail risk,” as it is known to quantitative traders, for where it falls in a bell-shaped probability curve. Tail risk, broadly speaking, is whatever financial cataclysm is believed by markets to have a 1 percent chance or less of happening.» —“In Nature’s Casino” by Michael Lewis New York Times Aug. 26, 2007. (source: Double-Tongued Dictionary)

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