What is overexposure?


Overexposure is when a dealer has invested an excessive amount of into one asset. This is probably dangerous for a dealer’s profitability as a result of if their chosen asset decreases in value then their complete portfolio is down. Spreading investments over various completely different belongings helps to lower the danger of being overexposed to a selected asset, this is generally known as diversification. 

Avoiding overexposure is a key a part of threat administration and is usually utilized by skilled merchants to extend profitability.

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