Exposure Definition

Exposure refers to the amount of capital at risk in a particular market, asset, or position.

What is Exposure?

Exposure can increase with leverage, as a smaller amount of capital can control a larger position size.

Managing exposure is a core part of risk management to avoid outsized losses relative to account size.

A trader holding a leveraged position worth $50,000 with $5,000 of margin has $50,000 of market exposure.

Earnings per share is a company's net profit divided by its number of outstanding shares.

An economic calendar lists scheduled economic data releases and events that can affect financial markets.

Equity refers to ownership value in an asset after liabilities are subtracted, or the current value of a trading account.