POSITION SIZE
Position Size is the amount of an asset bought or sold in a single trade, often based on the trader's risk tolerance and account size.
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Category – Portfolio Diversification
Portfolio diversification is the strategy of spreading investments across various asset classes to reduce risk. In trading, diversification helps mitigate the impact of poor performance in any one asset or sector. By investing in stocks, bonds, commodities, real estate, and other assets, traders can balance risk and return. Diversified portfolios are more resilient during market downturns, as the negative performance of one asset can be offset by the positive performance of others, reducing overall volatility.
