Definition of Downside:

  1. Downside is the negative movement in the price of a security, sector or market. Downside can also refer to economic conditions, describing potential periods when an economy has either stopped growing or is shrinking.

  2. The negative aspect of something otherwise regarded as good or desirable.

  3. Potential for gain in a deal, situation, or transaction. In securities trading, it is the probability of downward movement in the price of a particular security (bond, option, stock). Opposite of upside.

  4. Downside is expressed in terms of an estimation of a security or economy's potential to experience negative movement. A stock analyst, for example, may forecast how far a stock price might fall because of certain events. Meanwhile, economists can predict the downside to a country's economy by taking into consideration factors such as the unemployment rate, inflation, and gross domestic product (GDP) growth.

Synonyms of Downside

Snag, Drawback, Disadvantage, Stumbling block, Catch, Pitfall, Fly in the ointment

How to use Downside in a sentence?

  1. Your theoretical downside is 100% if the stock you bought falls to $0. However, if you short the company, your downside is not capped and is theoretically infinite.
  2. There are numerous ways that investors can protect themselves against downside.
  3. He says being a rock star is a fun line of work when youre young, but admits fame can have its downsides.
  4. For the most part, the higher the downside potential the greater the upside potential.
  5. Downside describes the negative movement of an economy, or the price of a security, sector, or market.

Meaning of Downside & Downside Definition