Portfolio

What is a trading portfolioWhat is a trading portfolio? When an investor holds a grou... More?

When an investor holds a group of various financial instruments, it is called a portfolio. The portfolio may contain assets such as stocks and shares, funds, currencies, derivatives and bonds.

The investorAn investor is someone who spends capital with the expectat... More may be an individual trader or a financial institution such as a bank, fund or venture capital company.

Building a portfolio for trading

An investor seeks to maximise their expected return and minimise any risks when building their trading portfolio. The goals of an investor can influence the portfolio and the investment strategy significantly.

Often, a portfolio will be a mix of asset classes. Some of the portfolios might be allocated to high-risk investments, such as high-yield hedge funds, bondsBonds are debt instruments, which means they are a way of b... More or derivatives. To hedge the risks involved, another part of the portfolio might be invested in safer assets such as government bonds. Some assets, such as real estate, might be a high or low risk, depending on the exact nature of the investmentInvestment is the commitment of money or capital to purchase... More.