Forex Investment and Currency Trading

The developments on the international capital markets have not only led to a range of new products. Modern technologies have in some cases also altered the way securities are traded. It is now possible to buy and sell the same security, money market instrument or derivative on the same day. This is called day trading. The intention is to take advantage of small and short-term fluctuations in the price of an individual asset so as to sell it at a profit or to limit price risks. If you conduct day trading, you should be aware of the particular risks involved.
Immediate [...]

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As the writer of an option, you assume the obligation, in the case of a call, to make delivery of the underlying asset to the buyer if the buyer exercises his option, or likewise in the case of a put, to take delivery of the underlying asset from the buyer at the agreed price. You as the writer thus bear the risk of a rise (in the case of a call) or a drop (in the case of a put) in the price of the underlying asset. If the option stipulates physical delivery (e.g. of shares), then you may have [...]

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Currency forwards have a symmetrical risk profile. This means that both the buyer and the seller face an equal distribution of potential profits or losses, and that these are essentially unlimited for both the buyer and seller.
Market price risk
The seller of a currency forward assumes an obligation to deliver foreign currency at an agreed exchange rate. If the exchange rate rises, the seller nevertheless has to make delivery at the pre-agreed price, which may be well below the current exchange rate.

If he is already in possession of the foreign currency, the seller does not benefit from the rising exchange rate.
If [...]

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You as an investor must consider that financial futures have a symmetrical risk profile. This means that both the buyer and the seller face an equal distribution of potential profits or losses, and that these are essentially unlimited for both the buyer and seller.
Market price risk
The risk of changes in market prices and rates ahs the following effect: The buyer (seller) incurs a loss if the price of the futures contract falls (rises). The buyer (seller) makes a profit if the price of the futures contract rises (falls).
The price performance of a futures contract depends in particular on changes in [...]

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