The markets have been volatile in the wake of the prolonged Rusian-Ukraine war, food and energy crisis, and COVID-19 lockdown. Stocks and cryptocurrencies are hitting record lows every month, while the Forex market continues to be volatile.
In times like this, how can traders be better prepared to face the unpredictable future?
The answer to that, is you should start trading multi assets to diversify your portfolio and protect your capital.
In order to earn consistent returns, asset diversification is crucial to weather the storm. If a trader relies mainly on a single instrument, for example, cryptocurrencies, the unexpected downfall of cryptos might blow their account. If you have different assets on your portfolio, the strengthening currencies or metals might take on your side and help minimise the risks.
Five reasons why you should start using a multi-asset broker:
1. Wide Range of Opportunities
Trading is largely about seizing opportunities at the right time. By trading with a reliable multi-asset broker, you’ll get more opportunity through asset diversification. You can also make your time more effective by trading other markets while one is closed.
2. Difersification Risk
Asset diversification equals risk diversification. Multi-asset trading will allow traders minimise and better manage the risks since they spread their capital into different instruments. By doing so, when one market falls, traders will not lose all of their money at once.
However, this risk diversification needs thorough research. Traders need to understand the correlations of each asset before trying to open positions in different instruments simultaneously. This sometimes requires experience and training to find out which one works best.
3. Tactical Asset Allocation
Tactical asset allocation is a strategy which requires an active management portfolio to use the market trends to beat the market itself. With this strategy, traders can take full advantage of the market by adjusting the allocation of capital to multiple assets. This requires access to a wide range of financial instruments and multiple asset classes.
At the first glance, tactical asset allocation and diversification might strike you as the same strategy but it is different in depth. To put it simply, diversification is the process of making decisions while asset allocation is the execution process. The goal of a tactical asset allocation is to balance the risk by allocating portions of your portfolio into different asset classes.
Take-profit targets allow you to lock in any profit when a trade moves in your favour. You're assured of a good earning, regardless of whether the price rises or falls after your take-profit target. Similar to a stop-loss, you won't be tempted to hold a position in hopes of it moving higher only to find the chart moves in the opposite direction.
This risk management strategy helps protect your portfolio by taking a stance on the opposite position of a related asset to offset the risk of losing. Typically, this strategy requires derivatives such as futures and options.
Hedging is specifically done to offset possible loss of a trader’s current asset by making another related investment instead of just investing in different and unrelated assets all at once. For example, when you are worried that your asset price might drop in the near future but you don’t want to sell it to avoid capital gain, you seek a stance in other related assets to offset the loss.
5. Buying Power
Multi-asset trading means an increase in buying power. A multi-asset broker usually offers leveraged derivatives trading for their clients, this allows traders access and take on position sizes on markets that would otherwise be unavailable for them. This will help increase their potential profits.
Fullerton Markets is the best multi-asset broker you need
As traders ourselves, we understand that speed, convenience and a seamless trading experience are crucial. You won’t want to waste time and energy by switching constantly between different asset classes across multiple brokers. Here’s why Fullerton Markets is your best choice to trade multiple assets:
1. More Than 130 Assets Available on MetaTrader 4 or 5
The award-winning brokerage is now offering not only Forex, but also indices, crypto CFD, stocks CFD, and commodities such as precious metals and crude oil.
2. Global Credibility
As a long-time trusted broker, Fullerton Markets has been providing unparalleled experience for traders since 2016. We have won multiple awards including “Best Forex Broker Asia Pacific 2021”, “Best Fund Safety Global 2021”, and “Best Social Trading Platform Asia Pacific 2021” from Global Business Review Magazine.
3. Fund Safety & Lightning-Speed Execution
We guarantee your fund safety with Fullerton Edge and Fullerton Shield, a triple-level safety programme designed to safekeep your funds. We also promise lightning-speed execution with less than one-second network speed and low latency.
4. High Liquidity
There’s also no need to worry about liquidity since we work with some of the world’s best liquidity providers across the markets.
5. Localised Support
We offer 24 hours a day, five days a week support via Live Chat in various languages including English, Chinese, Bahasa Indonesia, Malay, Thai and Vietnamese.
6. World-class Infrastructure & Education Resources:
Our trading ecosystem consists of a comprehensive wealth creation system that helps traders and introducing brokers build wealth with Fullerton Markets. In addition, our Research & Education team holds regular events and webinars to help individual traders.
7. Attractive Bonuses
Fullerton Markets also offers attractive bonuses to help your capital go further. Traders can enjoy up to 20% bonus when you sign up for Ultimate Level-Up Bonus.
What are you waiting for? Start multi-asset trading with Fullerton Markets now. Open a live account here.
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