A trader or investor is free to choose the financial instruments they want to engage in depending on their own 'style'.
But everyone wants to make a big profit, right?
So, this article will cover some financial instruments that are high risk but popular and the choice of many.
If it's risky, why is it still an option? Because it has the potential to give high returns to traders.
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Forex Trading
Foreign exchange instruments are the largest global financial market in the world involving a daily trading volume of over $7 trillion.
Traders are free to choose their favorite currency pairs to trade, for example EUR/USD, GBP/JPY, AUD/NZD and many more.
Currency markets are highly liquid and price movements can be affected by any changes in economic data, central bank policies and even geopolitical events such as war or pandemics.
Traders can choose a high leverage account provided by the broker platform, but risk losing capital quickly if they make the wrong move.
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Shares
Stock investment is one of the risky investment options, but it is the choice of many investors, especially from professionals.
Stock investment involves sharing the ownership of a company with the purchase of shares on offer.
Investors will generate profit through dividend returns as the invested company grows and generates high income.
Among the global stocks that are preferred are Apple, Microsoft, Nvidia, Amazon and others.
Investors will face a risk when there is an uncertain situation in the market that has a negative impact on the company causing the stock value to fall.
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Crypto Currency
Since 2021, the crypto market began to steal the attention of investors when the price began to soar so high, some even achieved a profit of thousands of percent in just a moment.
Among the famous cryptocurrencies are Bitcoin, XRP, Ethereum and Dogecoin.
Many investors have managed to make multiple profits through crypto investments with only a small capital, but there are no fewer who have lost.
Traders actually have the opportunity to trade cryptocurrencies with a small capital, but not many brokers provide such a platform.
Traders need to remember! Crypto price movements are very volatile and risky to lose in the long term, but have high potential for large and lucrative profits.
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Commodity
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 already understand the risks they will face as commodity trading is prone to changes based on demand and supply factors in the market.
For example, gold is categorized as a safe-haven asset. The attraction to gold will increase when there is a global economic crisis, but will decrease again when the situation recovers.
Thus, the price is at risk of going down and up significantly in such a short period of time.
In conclusion, it doesn't matter which instrument is chosen, it is the trader himself who needs to intelligently control the trading risk so that he does not lose and is able to generate profits consistently.
