The deficit of an amount received from a transaction versus the original amount of the investment. For example, when a forex trader establishes a trading account with $10,000 and has a number of transactions that reduce the net worth of the account to $8,000, the trader has suffered a loss of $2,000.

Related Terms

 • diversify  • loss adjuster  • make  • provide  • tax loss carry forward  • political risk  • credit risk  • break even analysis
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