How Exposure% works?

AmiBroker
1

Hi, how's it going? Could someone help me understand the EXPOSURE% metric? I think I understand pretty much how it works, that is:
It measures, bar by bar, the total value of open positions and divides it by the total portfolio capital (I understand this is done at the close of the bar). Then it adds up all those values ​​and divides them by the number of bars.

A question arises when I think about having a long and a short position in the same asset at the same time. Let's say the size of each position is €5,000 and the portfolio capital is €100,000. If so, would it only measure that, Exposure?
Will it take into account €5,000 of the long position + €5,000 of the short position? €10,000/€100,000 = 10% Exposure
Or in that case, would it take into account €0 (because the Long position offsets the Short position) and therefore give 0% Exposure? If it did so, it would be measuring something related to Risk, right?

2

If you go long and short both positions are using up capital / margin so your exposure would be 10%. However this is assuming a non-margin account. If you have a 25% margin account your exposure would be 2.5% because then you would be able to leverage up to $400,000. Hope this makes sense.

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