Lux Investing

Is the risk factor of investing in commodity futures greater or lesser than in other funds?

Public Comments

1. It can be much greater depending on what kind of contract you buy.
2. the risk factor definitely high....but u have a few advantages to this risk also.... huge funds cant move any commodity...coz they depend on their other peers in the main exchanges and u know their movement beforehand due to the world factors... lets talk about crude oil.... any tension in iraq or the oil producing countries or falling inventories levels are sure to drag crude oil higher...so u know before hand...its gonna move up and u can act accordingly.... so u can rather take ur positions even if it involves risk in it...i hope this helps...