Portfolio rebalancing
Portfolio rebalancing adjusts holdings to bring portfolio weights back toward specified targets after market movements or cash flows change them. It may involve trades or redirected contributions and can generate transaction costs, taxes and changes in exposure.
A hypothetical $10,000 portfolio targets equal weights in two assets but holds $6,000 and $4,000. Moving $1,000 from the first to the second restores equal weights, ignoring costs.
Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Glossary definitions are general education only and are not investment advice. Risk disclosure