There are two factors that really determine whether an investor will risk capital or not: the potential for profit and the ability to liquidate the position should things start to head south. Real estate is a very stable investment for one simple reason: they arent making any more of it. In time, all property value rises making it a fairly safe investment vehicle but it takes a long time to liquidateespecially if the market suddenly goes south!
The currencies market, on the other hand, is an entirely different beast. The Forex, also called the Foreign Exchange market, is the largest and most fluid in the world. Nearly 2 trillion dollars are exchanged 24 hours a day between Sunday afternoon and Friday. It is very fluid making it attractive for investors because there always seems to be someone willing to buy or sell a position. Investors are also attracted to the Forex because it is very volatile which provides great potential for profit. There are five basic options available to a retail Forex trader, including:
Spot transactions
Forwards and futures
Options
Spread betting
Contracts for difference
The vast majority of...