situation that involves losing one quality or aspect of something in return for gaining another quality or aspect. More colloquially, if one thing increases, some other thing must decrease.
- when you trading something good for something even better. An exchange of one thing in return for another, especially relinquishment of one benefit or advantage for another regarded as moredesirable
The principle that potential return rises with an increase in risk. Low levels of uncertainty (low-risk) are associated with low potential returns, whereas high levels of uncertainty (high-risk) are associated with high potential returns. According to the risk-return trade off, invested money can render higher profits only if it is subject to the possibility of being lost.