Portfolio trading, also called basket trading, depends on a combination of different assets related to different financial markets (Forex, stock, futures, etc.). The concept behind it is diversification, the most commonly accepted way of risk reduction among traders to protect themselves from market volatility, minimize the risk extent and keep the profit balance. A diversified portfolio is necessary for this strategy to reach its target profits otherwise it will be aimless.
Forex trading can involve the risk of loss beyond your initial deposit. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary.
Forex accounts typically offer various degrees of leverage and their elevated profit potential is counterbalanced by an equally high level of risk. You should never risk more than you are prepared to lose and you should carefully take into consideration your trading experience.
Past performance and simulated results are not necessarily indicative of future performance. All the content on this site represents the sole opinion of the author and does not constitute an express recommendation to purchase any of the products described in its pages.