Current ATR value (or a multiple of it) can be used as the size of the potential adverse movement (stop-loss distance) when calculating the trade volume based on trader's risk tolerance.

Even though the dollar investment was a good one, the adverse movement in the exchange rate (from the view point of a dollar investor) has resulted in the investor making a loss in terms of sterling.

At the same time, the dollar proceeds from the investment are sold forward at 1, the forward exchange rate, thereby protecting the US investment from adverse movements in the exchange rate.

You're protected against any adverse movements in the exchange rate.

Price risk (Risk arising out of adverse movements in the world prices, exchange rates, basis between local and world prices)

Hedging UI risks: IEX provides a tool to hedge against adverse movements in electricity prices.

The forward exchange market is thus used by traders (and investors) to insure against adverse short-term movements in exchange rates.

Thus, many highly-indebted countries are now experimenting with novel mechanisms, such as currency options, interest swaps and caps and commodity-linked facilities, to reduce their exposure to adverse movements in international interest rates.

The biggest concern to the Australians will be any adverse movements from the Chinese economy, and the effect this might have on demand for natural resources, given that China remains a huge importer of Australian produce.

As the period one holds decreases, the chances of running into extreme adverse movements, causing huge losses, decreases.