Strategies7 min read
Multi-Instrument Portfolio Trading: Diversification for CFD Traders
Trading one instrument is risky. Learn how to build a diversified CFD portfolio. Correlation, allocation and the diversification that actually helps.
Why Diversify?
Diversifying across non-correlated instruments smooths the equity curve and reduces risk.
Building the Portfolio
Choose 4-6 instruments with low correlation: EUR/USD, XAU/USD, S&P 500, DAX 40, WTI oil, AUD/JPY.
Risk Allocation
Total portfolio risk: 5% max. Per instrument: 1% max. Reduce to 3% if correlations increase.
Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70-80% of retail investor accounts lose money when trading CFDs. Backtesting does not guarantee future results. Always consider whether you can afford the potential loss of your capital.