Diversification is the spreading of capital across various assets with different risk levels so as to minimize total risk and reduce financial losses. Investors invest money in securities from different issuers and in doing so form a portfolio of investment. If some shares turn out to be loss making, then other, profitable shares cover the losses, thereby reducing the losses to a minimum and thus diversify the risks.

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Trading Forex on margin offers good opportunities to receive high profit, and carries a high level of risk. Prior to trading you should make sure you fully understand all the risks involved and take into consideration your level of experience and financial situation.

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  • Tuesday, December 15, 2015
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