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Quote by: bishop you don't just enter into contracts in the forex, you can also purchase "units" just like they were individual shares of stock.. you can trade spot, futures, forwards (which no individual investor can actually afford) and options. |
Shares and stocks are similarly based upon contractual agreements. What I'm referring to is that most currency traders don't physically hold anything that really guarantees redemption unless they truly purchase physical currency (which would be a good idea for any long term currency investment). So you're still relying on 'the system' to remain stable in order to cash in on the investment.
For example, you might purchase $3,000 of some currency, but you simply hold an obligation from the company/bank you had the transaction with. It's not impossible that political events or problems with records (like corrupted data) could leave you holding an unreedemable IOU.
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heh.. and intrinsic value.. spoken like a true gold bug.  |
Nawww, I'm just a guy who likes getting paid for his work
I'm certain there are better investments than gold but most all of them depend on political stability.