™A $10,000 position moving 10% changes by $1,000; rebalancing helps place that movement in the context of the wider portfolio.
Risk & Portfolio
Rebalancing
Returning a portfolio toward its intended allocation by buying or selling holdings.
Plain-English context
Why it matters
This concept helps describe how one position or behavior can affect the resilience of an entire portfolio.
Assuming Rebalancing removes risk rather than describing or redistributing part of it.
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