Portfolio diversification has become a prominent topic in recent years, as assets such as cryptocurrencies show an increasingly strong correlation with major stock indices. The previously uncorrelated asset class now trades in stocks, yet is even more cruelly volatile.
The recent macro-environment has become in which assets you take a position and in which side of the market you are critical for survival. Using PrimeXBT and its massive list of digital and traditional assets, portfolio diversification is simplified and more accessible than ever before.
Here’s a look at PrimeXBT’s list of trading instruments and how they can be used effectively to protect capital and increase the potential for profits.
Introduction to Portfolio Diversification Profits
During the recent post-pandemic bull run, risky assets like stocks and crypto took off like a pair of rockets in parallel flight. Investors rallied while cryptocurrencies figuratively went to the “moon”.
The only problem is that when the stock market started to fall, the sudden and strong correlation between major US stock indices like Nasdaq and S&P 500 included crypto assets like Bitcoin and Ethereum. Less liquid currencies like Dogecoin have been depleted and lost up to 90% in value.
Portfolio heavy in these assets ranged from several times in the green to severely underwater and deep in the red. Those who moved capital to commodities like oil would have gained great profits during this time. With inflation hot, gold would also have protected wealth better than crypto or equities. The dollar has also acted strongly in relation to other currencies and assets in this economic environment, for example.
Available Assets Of Awarded Margin Trading Platform
The prescription above is that the right mix of trading instruments can diversify a portfolio so that no opportunities are left behind, but the risk is appropriately spread across unrelated or counter-related asset classes.
Well-diversified portfolios suffer less damaging lows and don’t miss out on winners so often. With PrimeXBT, traders get even more control with long and short positions on more than 100 different assets under just one roof.
The list of trading instruments available includes:
has become an important new value class for the digital age. Popular assets include Bitcoin, Ethereum, Solana and Dogecoin. More exotic high heels from trendy categories like GameFi, Metaverse, DeFi and others are also offered.
You name it, and the most important stock index is listed. This includes all major US, European and Asian countries stock indices such as the Dow Jones Industrial Average, S&P 500, FTSE, DAX 30, Nikkei, and many more.
Goods has become an increasingly important part of the global macro and geopolitical landscape, especially as inflation raises the prices of these scarce assets. Oil, natural gas, gold and silver are all listed on PrimeXBT and provide some of the most interesting diversification options.
Forex currencies has had a dramatic change since the pandemic occurred, and monetary policy has changed in general. Global inflation has done anything trading against the dollar a decent short chance. PrimeXBT offers all major pairs, many minors and a mix of exotics from emerging markets.
Portfolio Diversification With PrimeXBT Explained
Again, using crypto and stocks as an example, a portfolio too heavy on these assets would be missing the the incredible benefits of an energy sector
or the safe haven provided by golf and silver. Such portfolios could also benefit from the stability of forex currencies.
Positioning also doesn’t always have to be on the long side. PrimeXBT provides long and short positions for total flexibility. Short positions can protect against successful long positions when markets worry. Strategic long and short leaves no global market unexploited or opportunity untapped.
A careful mix can protect capital against correlative risk, minimize losses, and maximize exposure, making massive profits infinitely more possible. Stop-loss protection, technical analysis tools and more add additional ways in which traders can gain an advantage in markets.
Summary: How PrimeXBT Provides Unparalleled Portfolio Diversity
PrimeXBT offers all this and more. Marginal trade is just the tip of the iceberg. The platform is also home to the Covesting copy trading module, performance accounts, weekly contests, and the PrimeXBT trading academy.
Even better, all of these tools and trading tools are accessible from the PrimeXBT mobile app for Android and iOS devices. The program recently received a new update that introduced even more new features to the already packed range of products and services.
For those looking for an unrepaired portfolio and don’t want to manage dozens of accounts or platforms to do so, they can find everything they need and more at the award-winning PrimeXBT. Stop leaving your capital at risk and check it out now.