Definition of Exposure
The total amount of capital at risk in the market at any given time. If you have three open positions worth $10,000, $15,000, and $5,000, your total market exposure is $30,000.
At a glance
Term
Exposure
URL slug
exposure
Category
Risk & capital
Short answer
The total amount of capital at risk in the market at any given time.
Deep dives
Full A–Z glossary
Example
Example: $1,000 equity and 1% risk = a $10 cash cap. Size from “Exposure” and stop distance, not from a gut-feel lot size.
Common mistake
Common mistake: confusing “Exposure” with advertised max leverage — leverage alone does not set risk per trade.
Professional tip
Tip: write a cash daily loss limit independent of “Exposure”, then let the definition set size only inside that ceiling.
Practice tools:
Related terms
FAQ
The total amount of capital at risk in the market at any given time.
“Exposure” sits inside capital protection. Ignoring it turns leverage and margin from tools into a path to rapid loss.
Common mistake: confusing “Exposure” with advertised max leverage — leverage alone does not set risk per trade.