Introduction to Multi-Asset Derivatives

If you are looking to diversify your portfolio and increase market exposure, Fort offers a wide range of multi-asset derivatives that you can choose from. Broadening your portfolio’s asset allocation can greatly increase returns and/or minimize losses.

With our 13 different multi-asset derivatives, Fort traders are provided with the opportunity for exposure to 3 different asset classes:

Due to the fact that forex trading has no centralized marketplaces, currencies can be traded in whatever market is open at any given time, creating an ideal opportunity for traders to buy and sell currencies round the clock. Fort’s currency-based derivatives allows you to trade on 7 different multi-asset derivatives consisting of the major and minor currencies. When it comes to currencies, the majors include the US Dollar (USD), Euro (EUR), Yen (JPY), British Pound Sterling (GBP), Australian Dollar (AUD), Canadian Dollar (CAD) and Swiss Franc (CHF). The minors include the Euro/Australian Dollar (EUR/AUD), New Zealand Dollar/US Dollar (NZD/USD), etc.

Some traders may wish to diversify their portfolio based on industry-specific exposure. The three industries that are commonly traded include metals, commodities and exotics.

The metals can be subdivided into two categories. The precious metals are metals such as Gold (XAU), Solver (XAG), Platinum (XPT) and Palladium (XPD). The base metals are metals such as Aluminum, Copper, Lead, Nickel, etc.

If you wish to expose your portfolio to commodities, they will be in the form of two subcategories as well, much like the metals. The first subcategory is energy, consisting of TWI Crude Oil, Brent Crude Oil, Unleaded Gasoline, etc. The second subcategory is agriculture, consisting of Corn, Cotton, Sugar, Wheat, etc.

The last of the industries you can expose your portfolio to is the exotics, which consist of currencies such as the South African Rand (ZAR), Hong Kong Dollar (HKD), Singapore Dollar (SGD), etc.

You may also choose to seek geographical exposure, where you diversify your portfolio in accordance to a specific region in the world. The different regions in the world offer a myriad of multiple stocks and currencies, making it a great choice in terms of asset diversification. There are three large regions we can pay attention to.

The first is the Asia Pacific region, which consists of stocks such as HIS (Hang Seng) and SSEC (Shanghai Composite), and currencies such as the Yen (JPY) and the Australian Dollar (AUD).

The second is the North and South American region, which consists of stocks such as MerVal (Buenos Aires Stock Exchange) and BVSP (BM&F Bovespa Stock Exchange), and currencies such as the US Dollar (USD) and Canadian Dollar (CAD).

The third is the European region, which consists of stocks such as DAX (Frankfurt Stock Exchange) and SMI (Swiss Stock Exchange), and currencies such as the British Pound Sterling (GBP) and Swiss Franc (CHF).