Glossary › open risk
Trading glossary · risk
open risk
The total money you would lose if every trade you have open right now hit its safety exit.
The fuller meaning
The sum of what would be lost if every open stop were hit, also called portfolio heat. Many traders cap it, for example at 5% of the account, and count correlated positions together; it keeps many small bets from adding up to one big one.
open risk, also called total open risk, portfolio heat.
Related words
1% rule · ATR stop · average loss · average win · breakeven · breakeven win rate · correlation · daily loss limit · drawdown · equity curve