<p>A <strong>diversified company</strong> is a business that operates in multiple industries or offers a wide range of products and services. This strategy aims to reduce risk by not relying on a single source of revenue. In the context of trading, understanding diversified companies is crucial for investors seeking to build a balanced portfolio.</p>

<h2>How It Works</h2>
<p>Diversification can occur at two levels:</p>
<ul>
  <li><strong>Business diversification</strong>: A company operates in multiple industries. For instance, a tech company might also have interests in healthcare or finance.</li>
  <li><strong>Product/service diversification</strong>: A company offers a variety of products or services within its primary industry. For example, a retailer might sell clothing, electronics, and groceries.</li>
</ul>
<p>Diversified companies often have different business units, each with its own management team and financials. This structure allows for better risk management and potential growth opportunities.</p>

<h2>Why It Matters for Traders</h2>
<p>Diversification is a key principle in portfolio management. Here's why it matters for traders:</p>
<ul>
  <li><strong>Risk mitigation</strong>: If one part of the business struggles, the other segments can help offset the losses.</li>
  <li><strong>Growth opportunities</strong>: Diversified companies can explore new markets and revenue streams, driving growth.</li>
  <li><strong>Counter-cyclical performance</strong>: Different industries perform well at different times. Diversification can help smooth out returns over time.</li>
</ul>
<p>On the <strong>MetaTrader 5</strong> platform, traders can easily monitor and manage diversified companies by using multiple charts and indicators to analyze each business unit.</p>

<h2>Example</h2>
<p>Consider a company like STB Provider, a regulated Forex and CFD broker. It offers a wide range of instruments (500+), including currencies, commodities, indices, and stocks. This product diversification allows STB Provider to cater to various trading styles and market conditions. Moreover, STB Provider's Straight-Through Processing (STP) and No Dealing Desk (NDD) execution models ensure that clients' trades are executed quickly and fairly, regardless of market volatility.</p>

<h2>Key Takeaways</h2>
<ul>
  <li>Diversified companies operate in multiple industries or offer a wide range of products/services to reduce risk.</li>
  <li>Diversification can occur at the business or product/service level.</li>
  <li>Traders benefit from diversification through risk mitigation, growth opportunities, and counter-cyclical performance.</li>
  <li>MetaTrader 5 allows traders to effectively manage and analyze diversified companies.</li>
</ul>