John S. asked:
As a personal investor, I’ve dealt more with options and commodities but have recently been looking at currencies & foreign exchange. What I don’t like about options is that they are a “wasting asset” that can expire worthless if not exercised whereas with commodities and foreign exchange, you have a position in an asset that won’t automatically expire.
As a personal investor, I’ve dealt more with options and commodities but have recently been looking at currencies & foreign exchange. What I don’t like about options is that they are a “wasting asset” that can expire worthless if not exercised whereas with commodities and foreign exchange, you have a position in an asset that won’t automatically expire.
It is interesting that with foreign exchange, you can trade on margin at rates of 100 to 1 whereas with pure equities, it is usually no more than 4 to 1.
If you are an experienced investor or financial advisor, I would appreciate hearing your perspective as to the pros and cons of trading in these three markets, i.e. FX, options, and commodities.
