Risk-on risk-off is an investment setting in which price behavior responds to and is driven by changes in investor risk tolerance. Risk-on risk-off refers to changes in investment activity in response to global economic patterns.
During periods when risk is perceived as low, the risk-on risk-off theory states that investors tend to engage in higher-risk investments. When risk is perceived to be high, investors have the tendency to gravitate toward lower-risk investments.
RISK ON - is when investor are looking to multiply their money, they are looking for RISK. MORE RISK - MORE MONEY
RISK OFF - is when investors are looking to keep/save their money, they are looking to protect more than to RISK. MORE PROTECTION - LESS MONEY