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

 • sell short  • worthless  • systematic risk  • square  • net loss  • tax loss  • Tax-timing option  • diversify
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