Risk On / Risk Off Meter
The Risk On / Risk Off Meter is your snapshot of global market mood — showing whether traders and investors around the world are taking on risk or playing it safe.
When the needle moves into the green zone, markets are in Risk On mode. That usually means confidence is high — stocks are rising, traders are buying growth assets, and currencies like the AUD or GBP are gaining strength.
When it drops into the red zone, it’s Risk Off. That’s when fear takes over — investors rush into safe havens like gold, the US dollar, or the Japanese yen, and riskier assets start to fall.
If it’s hovering around zero, the market is in a Neutral phase — neither confident nor fearful — often a calm before the next big move.
This simple gauge blends together multiple indicators from across equities, bonds, commodities, FX, and volatility to create a single Risk Score ranging from –100 to +100. It gives you an instant read on global sentiment — helping you stay aligned with the bigger picture before placing your next trade.
Strong Risk‑On
Risk Score: 33
Last updated: 27 October 2025 09:46:20
How to Use the Risk On / Risk Off Meter
The meter is a fast, executive read on global risk appetite. It helps you stay on the right side of flow, triage trade ideas, and avoid fading regime momentum.
1) Understand the Score
Single Risk Score: –100 → +100, mapped to seven discrete regimes:
- –100 to –60 — Extreme Risk-Off
Panic/deleveraging: equities dump, credit spreads blow out, USD/JPY/gold bid, duration in demand. - –59 to –30 — Strong Risk-Off
Flight to quality, defensive rotation, higher vol; Treasuries well-bid. - –29 to –10 — Mild Risk-Off
Cautious tone; trimming beta, no broad capitulation. - –9 to +9 — Neutral
Mixed signals; chop/consolidation; market waits for catalysts. - +10 to +29 — Mild Risk-On
Constructive sentiment; gradual equity gains; tighter spreads. - +30 to +59 — Strong Risk-On
Momentum chase; vol suppression; beta outperforms. - +60 to +100 — Extreme Risk-On
Euphoria/liquidity surge; speculative positioning heavy.
Color coding: deeper red as it goes more negative; deeper green as it goes more positive. The center text and the gauge progress match the regime color.
2) Align with the Regime
Use the regime as a filter, not a crystal ball:
- Risk-On buckets (≥ +10): Favor longs in indices/growth, cyclicals, credit, and pro-cyclical FX (AUD/NZD/GBP/EMFX); fade classic havens (USD/JPY/CHF, duration) on rallies.
- Risk-Off buckets (≤ –10): Rotate to defensives/quality; favor USD/JPY/CHF, duration, and gold; fade high-beta/risky credit.
- Neutral (–9…+9): Play mean-reversion, relative value, range trades; size down trend bets.
3) Confirm Your Setups
- With-regime trades: greenlight with normal risk.
- Against-regime trades: require confluence (price action, breadth, macro catalyst); tighten stops or reduce size.
4) Catch Inflections Early
Monitor rate of change in the score:
- A fast move +40 → –10 = risk appetite cracking; de-risk or hedge.
- A pivot –35 → +5 with improving breadth = risk basing; start scaling into beta.
5) Keep Context
The meter is cross-asset sentiment, not a single-ticker signal. Map how your instruments historically behave per regime (e.g., S&P, NASDAQ, EUR/USD, crude, HY vs IG).
6) Update Cadence
The widget timestamps each refresh. For active risk, treat it like weather: daily or intraday checks keep you aligned with the prevailing climate.
| Regime | Score Range | Typical Market Behaviour |
|---|---|---|
| Extreme Risk-Off | –100 → –60 | Broad sell-offs, investors rush to safety (cash, top-quality bonds, gold). |
| Strong Risk-Off | –59 → –30 | Defensive tone, money moves from risk assets into safer markets; volatility stays high. |
| Mild Risk-Off | –29 → –10 | Cautious mood, trimming positions, weakness in higher-risk assets but no panic. |
| Neutral | –9 ↔ +9 | Mixed signals, range-bound trading, markets waiting for new information. |
| Mild Risk-On | +10 → +29 | Gradual improvement, steady gains in stocks and credit, sentiment turning constructive. |
| Strong Risk-On | +30 → +59 | Clear risk appetite, momentum builds, growth and emerging markets lead. |
| Extreme Risk-On | +60 → +100 | Euphoria phase, aggressive risk-taking, speculative areas and beta outperform strongly. |
FAQs — Risk On / Risk Off Meter
1) What is the Risk On / Risk Off Meter?
A cross-asset sentiment gauge that condenses signals from equities, rates, FX, commodities and volatility into a single Risk Score (–100…+100), mapped to seven regimes from Extreme Risk-Off to Extreme Risk-On.
2) How should I interpret the score now?
The score slots into these 7 regimes:
- –100 to –60: Extreme Risk-Off
- –59 to –30: Strong Risk-Off
- –29 to –10: Mild Risk-Off
- –9 to +9: Neutral
- +10 to +29: Mild Risk-On
- +30 to +59: Strong Risk-On
- +60 to +100: Extreme Risk-On
Deeper red = more negative risk appetite; deeper green = stronger risk appetite.
3) What happens in Risk-On regimes (+10 and above)?
Flows typically favour equities, cyclicals, credit risk, EM/risky FX (AUD/NZD/GBP/EMFX); safe-havens (USD/JPY/CHF, duration) often lag. The stronger the regime (Strong/Extreme), the more momentum and vol suppression you should expect.
4) What does Risk-Off mean (–10 and below)?
Defensives outperform: USD/JPY/CHF, duration, and gold get bid; equities/high beta/EM FX underperform. Strong/Extreme Risk-Off usually comes with wider spreads and higher vol.
5) Can the meter predict markets?
No crystal ball. It doesn’t forecast price; it profiles sentiment and trend context that often precedes or amplifies moves. Use it as a macro filter/confirmation layer—not a standalone signal.
6) How often is the Risk Score updated?
Whenever the underlying inputs refresh (manual or automated, depending on your setup). The “Last updated” timestamp under the gauge shows recency. Active traders typically check daily to intraday.
7) Should I trade only in Risk-On/Risk-Off?
No. Treat regimes as context for sizing, timing, and instrument selection:
- With-regime trades = standard risk.
- Against-regime = need confluence (price action/breadth/catalyst) and tighter risk.
8) Why does the gauge colour change?
Colour equals regime: red shades (Risk-Off), grey (Neutral), green shades (Risk-On). The centre headline and progress arc match the regime for instant read-through.
9) What drives the Risk Score?
A blended, cross-asset read (typical inputs include: equities/breadth, volatility (e.g., VIX), FX risk proxies (e.g., AUD/JPY), rates/curve, commodity risk ratios (e.g., copper–gold)). Exact mix can be customised; purpose is a balanced risk-appetite composite.
10) How do I use it in practice?
- Filter & bias: Align ideas with the current regime (e.g., beta longs in Risk-On; defensives in Risk-Off).
- Risk management: Scale down/aggress up as the regime moves toward the extremes.
- Change detection: Watch regime transitions and rate-of-change for early warning before price fully adjusts.
Bottom line: Trade with the regime, not through it. Use the gauge to stay synced with global flows while your strategy handles entries, exits, and risk.