Exposure or Market exposure is a financial term that measures the proportion of money invested in the same industry sector. <\/span><\/p>\n It is the degree to which a portfolio invests in a particular stock or market sector.<\/span><\/p>\n An investment portfolio consists of several types of assets (for example, stocks, bonds, real estate, commodities, etc.). <\/span><\/p>\n Consistent with the financial goals of the account holder. It is the portion of the portfolio’s risk attributable to its unique composition of securities. For example, a portfolio with shares of some stock is exposed not only to fluctuations in the company’s stock price. But it is to the overall success level of the whole industry.<\/span><\/p>\n This particular proportion is expressing as a percentage. If a portfolio has 40% real estate assets, that portfolio has 40% real estate market exposure.<\/p>\n To be more clear, a stock portfolio with a total worth of $500,000, with $100,000 in semiconductor industry stocks, would have a 20% exposure in “chip” stocks.<\/span><\/p>\n In trading, it is a term that means three things:<\/span><\/p>\n In stockbroking, your exposure is equal to the total amount you spent on open positions. <\/span><\/p>\n Leveraged trading works differently.\u00a0Your exposure can expand considerably beyond your initial outlay, known as your margin. Some trades, for example, require a 10% margin and exposes 90% beyond the amount of their deposit. In these cases, profit can be bigger but losses can exceed initial deposits.<\/span><\/p>\n Let’s say, the large percentage of a portfolio is on one particular asset class. In that case, the portfolio’s value will commensurately be affected by the gains and losses in that asset class.<\/p>\n For this reason, investors must take care when deciding the amount of market exposure they wish to assume. Many experts encourage investors to diversify across a broad range of asset classes. So that their portfolios’ aren’t overly exposed to one particular sector.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":" DEFINITION of exposure Exposure or Market exposure is a financial term that measures the proportion of money invested in the same industry sector. WHAT IT IS IN ESSENCE It is the degree to which a portfolio invests in a particular stock or market sector. An investment portfolio consists of several types of assets (for example, […]<\/p>\n","protected":false},"author":4,"featured_media":6932,"parent":3018,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"content-type":"","_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"class_list":["post-3300","page","type-page","status-publish","has-post-thumbnail","hentry"],"yoast_head":"\nWHAT IT IS IN ESSENCE<\/b><\/h4>\n
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HOW TO USE<\/b><\/h4>\n