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Capital Exposure

Capital Exposure		The amount of capital (money) that may be lost if a trade moves against the initial position. In other words, the potential cost to find out if the trade decision will be profitable or not.
Additional comments: Often called risk. The initial capital exposure per unit is the difference between the entry price and the initial protective stop price.

Related Terms
		Capital The amount of money you have invested. When your investing objective is capital preservation, your priority is to try not to lose ... Entry Strategy The strategy to determine the entry conditions and specific entry and initial stop-loss prices. ... Initial Margin The initial deposit of collateral required to enter into a position as a guarantee on future performance. ...

 

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