72lab
Sign up free
Trading glossary

What is portfolio heat?Portfolio Heat

The total loss, as a share of the account, if every position hit its stop-loss at once; for example, 6 positions risking 1% each is 6% heat.

Learn “portfolio heat” in an animated lesson

Related terms

See how “portfolio heat” works for yourself with an animation you can drag and play.

Go to “Multiple Positions: Adding Up Total Risk”
What is portfolio heat (Portfolio Heat) · 72lab