FSP Academy
Glossary

Beta

How much a position moves relative to its benchmark market.

A beta of 1 moves with the market, above 1 amplifies its swings, and below 1 dampens them. It captures market (systematic) risk that diversification cannot remove, and is a building block for sizing exposure and separating market-driven returns from skill.

Learn it properly
Portfolio & Allocation course →
Sizing across positions, correlation, and exposure.

Put it into practice. Log a trade, see it in your stats.

Start free