Portfolio Definition

A portfolio is a collection of financial assets, such as stocks, bonds, currencies, or commodities, held by an individual or institution.

What is a Portfolio?

Portfolios are often diversified across asset classes to help manage overall risk.

Portfolio performance is typically measured by tracking the combined value of all holdings over time.

An investor holding a mix of stocks, bonds, and cash has built a diversified portfolio.

A pending order is an instruction to buy or sell an asset once the price reaches a specified level, rather than immediately.

A pip is the smallest standardized price movement in a currency pair, typically the fourth decimal place.

Position sizing is the process of determining how much capital to allocate to a specific trade.