Is diversification a risk management strategy in Forex?

[Potuse]

Some traders claimed that diversification of portfolio in forex trading is a way to minimise losses and I think it is a debate that we should talk about because when you diversify your portfolio, you are in curing more risk which will translate to more losses.

 

[eenya00]

diversification is definitely a risk management strategy in forex and it is a very effective one at that, which if done properly can reduce your level of loss when it does happens.

 

[Good-Person]

Some traders claimed that diversification of portfolio in forex trading is a way to minimise losses and I think it is a debate that we should talk about because when you diversify your portfolio, you are in curing more risk which will translate to more losses.

There are many people who diversify their investments in order to prefer market losses. However, diversification alone will never help anyone. Traders must try to analyse the market in a proper way.

 

[Planbizzle]

A trader can decrease their exposure to any one currency or market by investing in a diverse range of currencies or currency pairings, which can assist to manage risk and mitigate the effects of market volatility.

 

[Yohanna]

Diversification could be a risk management strategy but on the other hand it could also be a way to ensure more losses if care is not taken because you can lose in all your portfolios.