Hi All
Heres my daily question, ? Its mentioned several times on here without definition and its not on investopedia.
Thanks
Max
Hi All
Heres my daily question, ? Its mentioned several times on here without definition and its not on investopedia.
Thanks
Max
Craig beat me into the smart ass answer, so I'll give you the actual answer.
A basket refers to trading numerous instruments. It could be a lot of currencies, stocks, bonds, etc.. The idea is to smooth out the volatility in equity swings. If you trade enough things, some are always winning, others are dropping, some are impartial. It'll give smaller yields over time, but a much smoother equity curve.
So appears to be a shop that sells rucksacks, suitcases, handbags and shopping bags. Good awareness to spread the risk.
Thanks guys
Max
Is this a recommended tactic? Or more for people that don't want to risk a lot of?
I assume you'd have a steady winning rate, but without the risk, where is the thrill? haha
LOL, I suppose the thrill has to be a part of all trades, that is 1 reason why we, as traders need a little stress relief.