Glossary › exposure
Trading glossary · risk
exposure
How much money you have riding on a market, and so how much a move in that market can change your account.
The fuller meaning
The size of a position's sensitivity to a market or risk factor, often measured by position value rather than margin posted. Hedging reduces exposure; in India rupee currency derivatives have been permitted only to hedge real currency exposure, and at-the-money options have the most exposure to time decay.
exposure.
Related words
1% rule · ATR stop · average loss · average win · breakeven · breakeven win rate · correlation · daily loss limit · drawdown · equity curve