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Take for instance, the trader who regularly captures tiny earnings whilst taking oversized losses. In no time, the huge losses from the infrequent losing trades swallow up the meager gains from the a lot more frequent winning trades. High win prices do not necessarily equal profits and performance. Economic exposure also named operating exposure is the adjust in the worth of a firm arising from unexpected changes in exchange prices. Financial exposure emphasizes that there is a limit to firm’s potential to predict either straight or indirectly have economic exposure.