Glossary/ Risk
Risk
Exposure
The full value of a position, as opposed to the amount you have decided to risk on it. The two are routinely confused.
Where this comes up
Lessons that use the term in context, which is usually more useful than the definition on its own.
- Delta, in plain language — How much the option moves when the underlying moves.
- Risk of ruin — The probability nobody calculates before they need it.
Nearby terms
Risk of ruin · Slippage · Stop loss · Average down · Backtest · Drawdown