What is a forex portfolio?

A portfolio to me is a record or display of the work you have done, for instance if you’re a web designer you’re portfolio would consist of your previous designs so in forex what would you portfolio be?

I think that an investment portfolio is a group of securities you own and trade.

In the markets a portfolio is the collection of positions you have open at a given point in time.

I believe that a healthy portfolio is not defined by how many wins to lose ratio but rather what your Risk to reward ratio is.

Basicly all wrong…

My Forex portfolio is EUR/USD

Your portfolio is basicly WHAT PAIRS you trade in Forex.

Like in Stock market, your have Google, apple, and so on, which is your portfolio, but in forex, our portfolio is the PAIR your working with…

o, and please,dont take the " basicly all wrong" part as a snooty way of saying, " your all wrong, and I am right",

didnt mean for it to come out like that.

I get ya MNS i thought it was something along those lines.

This is surely true…not wrong in the slightest. Simply a collection of open positions which form part of a given portfolio.

Portfolio is nothing but the currency pairs that you trade .

At least its not too old to be accused of necroing an old topic :wink:

Anyhow, I have been thinking about this for a while, and how to integrate this into my trading.

I believe that building a portfolio in trading is very over(under)looked.
Google search turned up the usual sales pitches but no how to’s or much about it.

It (I think) is a way to manage risk by not putting all your eggs in one basket.
limiting market exposure by spreading the risk around, not so much Forex sniping but Forex shotgun!!!

Say you take an Eur/Usd trade.
You are fully exposed to that position.
If it goes against you, you lost all the money that was allocated to that trade (1-2%):slight_smile:
however if you take several small trades, say 8 at .25 risk account balance… Are you going to be wrong on all 8 trades?
You might be but if your doing it right you shouldn’t…(famous last words)

So by taking smaller trades and a few of them. you are still as exposed to the market as 1 normal sized trade.
but the risk of loosing all is lessened?? (probably wrong)

However, I think care should be taken so you don’t over expose yourself to one particular market ((Eur/Gbp/Usd/Jpy)(for example)

If for instance you opened ,Long Eur/Usd . long Eur/Jpy . long Eur/Aud . Long Eur/Gbp…
Euro needs to go up or all your positions will fail…BAD PORTFOLIO!!!

If something like …Long Eur/Usd, Long Aud/Usd . Short Nzd/Usd Long Cad/Chf , Short Aud/Jpy (Strategy permitting)

that would be a more balanced portfolio (shoot me down! LOL)

Anyhow that’s what I think a forex portfolio is and how it should be used…


If any of you is still interesting in portfolio theory and would liek to contribute to a project, come visiting me here:


Someone with good excel knowledge is highly requested