Glossary
Terms, defined plainly
- ExposureRisk
- Money committed to a position (size × price), distinct from the amount at risk.
- Lesson: Risk per trade and position sizing
- LeverageFutures
- Notional exposure divided by account equity; scales percentage gains and losses.
- Lesson: Leverage and liquidation
- Notional valueFutures
- Price × multiplier: the economic exposure of one contract.
- Lesson: Contract specs, ticks and notional value