How to use CFDs and spread bets in your portfolio to improve diversification

Look outside of the world of equities to improve diversification in a portfolio. One of the best ways of doing that is to look to contracts for difference (CfDs) and spread bets

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Diversification is one of the best ways to reduce risk in a portfolio, and using different assets is one of the most effective ways to achieve diversification.

The idea behind diversification is relatively straightforward. By diversifying your assets into different buckets, which can range from anything to property, bonds and stocks in different sectors and markets, reducing the chance of failure in one part of your portfolio will dramatically impact your wealth.

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Disclaimer

Your capital is at risk. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

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