← Glossary
Open risk
Open risk is what you'd actually lose on a position right now if its current stop were hit — it changes as the stop is trailed or moved to breakeven, unlike the original planned dollar risk, which is fixed at entry. A stop at or past breakeven makes open risk zero even while the position is still open.
OpenRisk = Shares × max(0, Entry − CurrentStop)This explains what open risk measures. It isn't investment advice — see the disclaimer.