Investing in Foreign Currencies

A

astos_sl

shitlord
8
0
What's the best way to invest in FX? Long or short. I signed up for an E-trade FX account, but they don't allow un-margined trading. If I wanted to go long on say the Yen, I would have to do so through options, futures or forwards. I don't want to mess with any derivates or leverage due to risk, I just want to trade with my money.

Are there other trading platforms that will allow this? Or perhaps some currency ETFs?
 
K

Kedwyn

Silver Squire
3,915
80
You don't need margin for options so long as your transactions fall under level 1 or 2. All that means is you can't lose more than you have. So buying contracts or selling contracts you own would be examples as would covered transactions.

You do need to execute a separate agreement to trade them. Call your brokerage and ask.



Options are fun. Just don't get carried away. When you're wrong you're usually really wrong investing that way.

I'd also avoid currencies. I prefer more volatile plays. Pick some really volatile stocks like Netflix as an example and play it.
 
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