The product has four measures as follows: 1.
Should fully understand their own risk tolerance, in advance familiar with the planned investment product characteristics, two relative to make a reasonable investment plan.
Do not blindly follow the trend, can not only look at the product rate of return and the length of time, but should comprehensively consider the profitability and risk of investment.
If the risk tolerance is low, you can take bank fixed deposits or fixed income financial products;
If you can afford it, you can buy structured foreign exchange financial products, or if you have professional knowledge, you can try trading them.
2.
Purchasing financial products, should fully understand the product’s linked assets and trading rules.
The volatility risks of different linked assets vary greatly, and generally speaking, the market is much more volatile than the gold market.
Investors choose to take the gold index as the relevant subject of foreign exchange financial products suffer less risk of loss;
The capital market is more likely to cause drastic fluctuations, and the potential risk level of financial products linked to capital market instruments is higher than that of linked financial products.
3.
Before choosing foreign exchange financial products, investors should also weigh the contradiction between their liquidity needs and investment returns.
For investors with poor financial conditions in the near future, they should try their best to choose products with high liquidity or financial products with early redemption clauses. The term is mainly short-term, and of course they will certainly lose some opportunities of high returns.
4.
In any transaction involving foreign exchange, exchange rate risk is the biggest risk and one that cannot be avoided.
Institutional investors can avoid exchange rate risk through hedging and forward transactions;
Ordinary investors do not have such trading means, so they can try to choose foreign exchange financial products settled in local currency to avoid risks caused by exchange rate fluctuations between local currency and foreign currency.
If the use of foreign currency settlement of wealth management products, should first identify a target currency, so that investors can lock in gains or stop losses in time.
Specifically, foreign currencies with better or higher macro economy should be selected as the target currencies to minimize the risks caused by exchange rate fluctuations.