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In the trading station on your MT4 platform, on the bottom you’ll see a tab that says “exposure,” and this opens up a handy bar graph and pie chart. What’s this for? Well, it measures your exposure, sure, but how can you use that to your advantage in trading?
Forex’s exposure problem
As a savvy investor at this point, you know you probably want to diversify your portfolio. Not putting all your eggs in one basket helps mitigate risk, and if you are trading in more than one security, you can get more out of your trading time, even opening several positions at once. So, you take a trade in EURUSD, GBPJPY, GBPUSD, and NAS100. Great, right?
Er, there is a slight problem.
Forex offers a large number of assets that you can trade in, which gives you a fantastic opportunity to diversify your portfolio without having to get into a bunch of esoteric asset classes. But some of them are very closely related and are the same underlying asset. You can even find that you...
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