Account diversification is an important money management technique in forex trading. It involves spreading one?s capital across multiple instruments, including currencies, commodities, stocks, and other financial instruments. This can help reduce risk, as losses in one instrument may be offset by gains in another. It can also help increase returns, as different types of instruments may move in different directions, leading to a diversified portfolio that can benefit from multiple market conditions. Account diversification also allows traders to spread risk across different markets, regions, and currencies. This helps to reduce exposure to a single market, which can help minimize losses during adverse market conditions. Finally, diversification can help to manage risk more effectively and make more informed decisions.