A portfolio or investment portfolio is a place to store and collect an investor's financial assets. It allows investors to see all of their trading activities in one place. The purpose of a portfolio is to achieve the investor's investment goals, such as capital growth, income generation, or risk diversification.

 

A portfolio consists of three key components: Account, Position, and Order.

 

1. Account

 

An account refers to your investment account for trading assets. This account shows the amount of money they have and is ready to be invested and allocated, and shows your unrealized profits/losses and accumulated equity.

 

2. Position

 

A Position is a position in which investors hold an asset or operate trading an asset at that time. Each trading of a financial asset is counted as 1 position and is stored in your portfolio.

 

3. Order

 

An order is an instruction to buy or sell assets in advance. This order will be traded in the system later because you have set a price point at which to trade, or you are trading while the market is closed. 

 

In IUX Invest, there are 2 types of orders:

 

3.1 Pending Order

 

A Pending Order is the trading of an asset at a predetermined price. When the price reaches the set point, it becomes at market price, and the system will execute the trade or open the position immediately. You can cancel a pending order as long as the system has not executed the trade.

 

3.2 Entry Order

 

An entry order is similar to a pending order but is used for assets with market opening and closing times. When the market opens, the selected asset will be traded in the system immediately. Similarly, you can cancel an entry order as long as the system has not executed the trade or the market is still closed.

 

 

 

From everything we have discussed, these are the important things you need to know about portfolios to understand them thoroughly and proficiently assess the performance of your asset trades. Therefore, these 3 main components are indispensable. With this knowledge, you can understand the importance of having a portfolio.

 

Start your trading journey with IUX, offering swap-free in all account types, low spreads, and many tools for analysis and risk management to facilitate your trading. 24-hour assistance is also available. Register and start now!