Trading the FX Markets
There is a lot of talk about risks in a portfolio and the importance of diversification. What those risks are and what true diversification is can be many different things to many different people. But in today’s portfolio, the traditional 60 percent stocks and 40 percent bonds structure isn’t really true diversification. After all, we’ve seen stock and bond markets move in lockstep. So what’s a trader to do? You could diversify, with, currency futures.
More than 70 different currency futures and over 30 currency options contracts, provides investors access to economies such as the Eurozone and United Kingdom, as well as Russia, Canada, Japan, Australia and New Zealand. If it’s developing economies you seek, there are currency contracts focused on China, India and Brazil.
Each is denominated in foreign currency amount and are available to trade almost 24 hours per day. There are also multiple contract sizes to choose from. So go ahead and diversify – really diversify.
Peter Knight Advisor