How exposure can be utilized efficiently

August 10th, 2017 → 5:00 pm @

How to use exposure efficiently


Market exposure is the percentage of the whole portfolio holdings and it refers to the amount of money, or percentage of a portfolio, invested in a specific security, market sector or industry. The exposure can be used for differently at different time. The exposure is good for someone in some cases and also bad for someone in some other cases. That is all according to our decision. 

The exposure must be used for the traders in a limited way because whenever we use more exposure then it will directly affect our profits. Indian markets MCX has need the exposure but in case of NSE it doesn’t require any exposure. Because exposure is mainly used for those they have no more money to spend for scrip then the broker will gave an exposure according to your amount. Each technique is if we are using more exposure then we have to face lots of risk.  

If you are using more exposure then more than of your profit is directly turns to your broker. We use more exposure it is badly affected to your trading future but  you  could not find money for your further trading then it will used as an option .  

Lots of peoples in my friend circle are used more exposure because of their greediness they are get in to a huge lose. These will discourage your energy level and confidence.

The main advantages of exposure is when we have no asset buy a particular scrip which has good market movement because of lack of money you didn’t purchase that scrip in these situations you should definitely go  with the condition. Because you don’t have any other option in those cases, I definitely suggest this term for you. But in your mind you should definitely bothered about it and keep in mind what are the criteria they gave to you.

Another case is, you have money to spend but because of your greediness you don’t spend it efficiently. You take more exposure than you have. But the after effect is that you are in profit the majority of profits are going to broker’s hand.

They are not a well wisher of yours. They want only money if you are in highest loss or you are in profit they don’t care about their only targeting money from you. But do you realize that in particular moment then you don’t have a single coin in you are hand. Let think about it, any one is giving money to you freely without any cost is it possible, it is the reason I am heating these term exposure. 

You have to take decision about what you can do with your leverage. You have to use your exposure minimum 2 times, because they are less risky, maximum 20 times exposure are available. Each should be taken carefully and check you are account continuously for you are safety. You could prioritize your profit then you have to use less exposure.


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