Portfolio definition

A portfolio refers to group of assets that are held by a trader or trading company. Assets in a portfolio can come in many forms, including stocks, bonds, commodities or derivatives.

Typically, a portfolio will reflect the trader who owns it, with risk tolerance and investing strategy key components in how a portfolio is built.

An investor looking for long-term profit with little risk may have a portfolio made up of several prestigious stocks, bonds or index funds with little buying and selling in the short term. A day trader would see much more turbulence in their portfolio, which may be made up of forex trades or long and short leveraged derivatives.

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