Overexposure definition

A - B - C - D - E - F - G - H - I - L - M - N - O - P - Q - R - S - T - U - V - W - Y

See all glossary trading terms

The term for when a trader makes the technical mistake of investing too much in a particular opportunity.

Increasing exposure offers the chance for greater profit from a position, but comes at greater risk. When a trader believes that a trade’s profit potential is so high that they increase exposure to unwise levels, it is known as overexposure.

Almost all trades involve risk, and an overexposed position can end up incurring significant losses even when you’ve undertaken measures to limit your risk. Being overexposed on a leveraged trade, for instance, can mean ending up with losses that exceed your initial deposit.

Visit our education section

Find out how to avoid some of the technical mistakes often made by traders.

Contact us

Our office is open 5 days a week Monday to Friday from 9am to 6pm. Support line is available 24hrs a day from 8am GMT Saturday to 10pm GMT Friday

+65 6390 5118

You can also email us helpdesk@ig.com.sg

Visit our storefront office at 9 Battery Road