A trader or investor is free to choose the financial instruments they want to invest in depending on their own 'style'.
But everyone wants to make big profits, right?
So, this article will examine some high-risk financial instruments that are popular and are chosen by many.
If they are risky, why are they still chosen? Because they have the potential to give traders high returns.
Forex Trading
Foreign exchange instruments are the largest global financial market in the world involving a daily trading volume of more than $7 trillion.
Traders are free to choose the currency pairs they like to trade, for example EUR/USD, GBP/JPY, AUD/NZD and many more.
The currency market has high liquidity and price movements can be affected by any changes in economic data, central bank policies and even geopolitical events such as wars or pandemics.
Traders can choose high account leverage provided by the broker platform, but there is a risk of losing capital quickly if they make the wrong move.
Stocks
Stock investment is one of the risky investment options, but it is the choice of many investors, especially professionals.
Stock investment involves sharing ownership of a company by purchasing the shares offered.
Investors will generate profits through dividend returns when the company being invested in grows and generates high income.
Among the global stocks that are preferred are Apple, Microsoft, Nvidia, Amazon and others.
Investors will face risks when there is an uncertain situation in the market that has a negative impact on the company, causing the stock value to fall.
Cryptocurrency
Since 2021, the crypto market has begun to steal the attention of investors when prices began to soar so high, and some have even achieved profits of up to thousands of percent in just a short time.
Among the famous cryptocurrencies are Bitcoin, XRP, Ethereum and Dogecoin.
Many investors have managed to make many times their profits through crypto investments with only small capital, but there are also those who have lost.
Traders actually have the opportunity to trade cryptocurrencies with small capital, but not many brokers provide such platforms.
For forex or stocks, many brokers provide it to traders, but for crypto it is not yet widespread.
Among the brokers that provide accounts for crypto trading is Saracen Markets using VIP accounts. You can CLICK HERE to try to register an account.
Traders need to remember! Crypto price movements are very volatile and risky for long-term losses, but have high potential for big and lucrative profits.
Commodities
Commodity trading involves physical assets such as gold, crude oil, agricultural products and others.
Commodities are often traded through futures, ETFs or spot markets.
Investors who choose the commodity market usually understand the risks they will face due to commodity trading easily experiencing changes based on supply and demand factors in the market.
For example, gold is categorized as a safe-haven asset. The attraction to gold will surge when there is a global economic crisis, but will decline again when the situation recovers.
Therefore, prices are at risk of falling and rising significantly in such a short period of time.
In conclusion, it doesn't matter which instrument is chosen, the trader himself needs to be smart about controlling trading risks so as not to lose and be able to generate consistent profits.
