Stock market glossary
Create your portfolio
Diversification
Diversifying means spreading your capital across several stocks, sectors, countries and asset classes, so as not to depend on the performance of just one.
It's the only "free lunch" in finance: by combining investments that don't all move together you reduce overall risk without necessarily giving up return. A portfolio with a single stock can lose a lot in a day; a well-diversified one absorbs the blows better.
💡 On Fanta-Trade the "Diversified" badge rewards those holding securities from at least three different classes, and the portfolio page shows the breakdown by class.
Related entries
Put it into practice, risk-free.
Try it with €100,000.00 in virtual money and real prices: free and no credit card needed.