Asset Allocation

Dividing an investment portfolio across different asset categories.

Detailed Definition

Asset allocation is an investment strategy that aims to balance risk and reward by apportioning a portfolio's assets according to an individual's goals, risk tolerance, and investment horizon (e.g., stocks, bonds, cash, gold).

Related in General Trading

Hedge

An investment made to reduce the risk of adverse price movements.

Fibonacci Retracement

A technical indicator used to identify support and resistance.

Margin Call

A broker's demand for additional funds.