Skip to main content
Trading Terms

Negative Amortization

When a payment is not enough to cover the interest on a debt, it is called negative amortization. This leads to a situation where the overall debt increases instead of decreasing. This can happen when the interest rate on a loan is higher than the minimum payment required. Negative amortization can result in a larger debt burden and should be avoided for financial stability.

Related terms

Overshoot

Understand the meaning and definition of Overshoot in the context of stock market, trading, and investments.

MORE
Reward-Risk Rank

Understand the meaning and definition of Reward-Risk Rank in the context of stock market, trading, and investments.

MORE
Mean P/L

Understand the meaning and definition of Mean P/L in the context of stock market, trading, and investments.

MORE
Clustering

Understand the meaning and definition of Clustering in the context of stock market, trading, and investments.

MORE
Position Management Ratio

Understand the meaning and definition of Position Management Ratio in the context of stock market, trading, and investments.

MORE
Pessimistic Rate of Return

Understand the meaning and definition of Pessimistic Rate of Return in the context of stock market, trading, and investments.

MORE

Open Free Demat Account!

Join our 3.5 Cr+ happy customers

+91
Explore other categories
Enjoy Zero Brokerage on Equity Delivery
4.4 Cr+DOWNLOADS

Enjoy Zero Brokerage On Stock Investments

Get the link to download the App

Scan this QR code to download the app
Get it on Google PlayDownload on the App Store

Open Free Demat Account!

Join our 3.5 Cr+ happy customers
+91