PrimeXBT is a good choice for traders seeking diversification thanks to the low fee structure that rewards those who take positions more frequently, or across many asset types. There are several factors that go into a proper risk management strategy.
Any trader worth their salt very well understands the importance of planning and execution, which includes the timing of exits or entries with limit orders and setting stop loss or take profit orders at key levels. But one critical factor is often overlooked: diversification.
Why Building a Diverse Trading Portfolio is Ideal for Performance and Risk
According to Investopedia, diversification is a “risk management strategy that mixes a wide variety of investments within a portfolio.”
The idea behind this concept is simple: By limiting exposure to any single asset, you’re also limiting the impact of any risk associated with a single investment.
A portfolio composed of many different asset types reduces risk, and on average, performs better than a single asset over the lifetime of the investment. The improved overall importance is due to the positive portion of individual investments made canceling out any negative performance from others.
Data suggests that the best risk reduction comes from a portfolio consisting of 25 to 30 different assets, however, there are some disadvantages to this method. Trading across so many different assets can cause broker fees to stack up, and managing this many different assets can be a time-consuming process, especially with many trading platforms offering a hyper-focused asset lineup.
However, the benefits far outweigh any drawbacks to diversification, making any additional time or money spent worth the reduction in risk and added portfolio performance.
PrimeXBT: The Solution to Portfolio Diversification Drawbacks
Traders interested in building the perfect portfolio, but are put off by the few disadvantages diversification can cause, need to look no further than PrimeXBT.
PrimeXBT is among the only trading platforms across the finance industry that offers forex, commodities, stock indices, and cryptocurrencies all under one roof, for a grand total of well over 50 different unique assets. Traders interested in creating unparalleled diversity can do so without the hassle of managing assets across multiple platforms.
Even better, PrimeXBT recently lowered trading fees across all trading pairs, and introduced a new, progressive trading fee discount system, offering up to 50% off fees for the most active traders. By offering so much asset diversity in a single, one-stop-shop, and by keeping fees low for traders who manage multiple assets, there’s no more profitable platform for new or professional traders alike.
PrimeXBT: Forex, Commodities, Stock Indices, Crypto and More
The Bitcoin-based margin trading platform offers forex, commodities, stock indices, and cryptocurrencies at up to 1000x leverage. The platform offers exposure to 36 of the world’s most popular forex currency pairs, including recent additions the Russian ruble, Turkish lira, and Singapore dollar.
In addition to the world’s top forex trading pairs, traders can bolster their earnings by adding a variety of stock indices to their portfolio, including the Dow Jones, NASDAQ, S&P 500, Europe 50, Japan 225, Australia 200, and many more.
PrimeXBT also provides access to commodities such as Brent and Crude oil, and Natural Gas, as well as precious metals gold and silver.
Finally, PrimeXBT offers digital assets such as Bitcoin, Ethereum, XRP, EOS, and Litecoin to ensure any clients of the platform aren’t missing out on one of the hottest and most profitable new markets.
PrimeXBT: The Advanced Bitcoin-Based Margin Trading Platform
All of the assets available on PrimeXBT can be traded using the platform’s advanced trading tools.
The platform boasts built-in charting software with a clickable price chart for the most accurate order entries and exits. Dozens of the most helpful trading indicators are included for profit-generating prowess. Both long and short positions are available both individually and simultaneously to profit from falling and rising markets, as well as building hedge positions.
Stop loss and take profit orders can be added when orders are placed, or can be added to existing positions for the greatest level of control over risk. Up to 1000x leverage is offered, depending on the trading pair, letting traders multiply any profits by a factor of a thousand.
The progressive, multi-tier discount system rewards the platform’s most active traders, by cutting the already low, competitive fees by as much as 50%.
The platform also provides clients with additional avenues to generate revenue beyond trading alone, with a lucrative four-level referral system, CPA offers, and much more.
An early access phase will introduce the new PrimeXBT Turbo platform, before a widespread rollout is anticipated.
Conclusion: PrimeXBT Helps Diversification Pros Outweigh the Cons
Considering the benefits that building a well-diversified trading portfolio can provide, there’s no denying it is an essential part of any successful trader’s strategy.
The benefits of diversification include:
- Overall reduction in exposure to loss
- Exposure to additional profit opportunities
- Positive performance can offset negative performance
- Prevention against market cycles
- Reduction in volatility exposure
- Reduction in exposure to external market factors (ie: climate, politics)
All that’s left is finding a way to manage a number of assets easily and efficiently and do so without letting fees cut into profits.
PrimeXBT is the perfect choice for traders seeking diversification due to the low fee structure that rewards traders who take positions more frequently, or across many asset types.
And with so many assets – digital and traditional – under one roof, a strong performing, risk averse portfolio can be built in no time with no stress, and very little starting capital thanks to the up to 1000x leverage offered on PrimeXBT.