4 High-Risk Investments That Can Offer Big Returns


If you’re looking for an investment with zero risk, stop now. If you are retired, or just a few years away from retirement, then you can invest in fully risk-free investments.
But if you’re not, your option is either low-risk investments, or high-risk investments.


If you’re the type of investor willing and able to face more risk with some of your investing money, then you’re likely to take on high risk.   

A number of investors chose high risk investments over low-risk ones because of their potential to provide larger rate of return. Here are some investments with relatively high levels of risk.

Leveraged Oil ETFs

Leveraged oil ETFs usually undergo high-volume trading activity and are known for their high levels of volatility. They either provide investors huge returns or losses.

They offer significant return on the pricing of several natural energy resources through futures contracts, including Brent oil, West Texas Intermediate (WTI) crude, heating oil, and gasoline. The height of increase is typically 2X or 3X the daily return.

Given oil prices’ volatility, trading activity reflects a magnified level of volatility in its prices.


Options provide sizeable gains for investors timing the market. They are commonly seen as fast-moving, fast-money trades. Investors having options can buy a stock or commodity equity at a given price in a future date range. 


It also allows investors to join in a stock’s price movement without the need to actually own the shares. A portion of the cost of ownership and the leverage involved offer the possibility for high returns.  

Still, options can be tough plays, as they’re volatile, levered, and speculative. Its time requirements on the purchase or sale of securities are also what make it a very risky investment.

Initial Public Offerings (IPOs)

An IPO is a great time for a company, since it means the business is doing well enough to need more capital to continue growing.

However, the chance of uncertainty is still high as to whether the company will be able to accomplish essential tasks to drive the business higher.  

Some IPOs can offer investors the opportunity to acquire shares while a company is extremely undervalued. This result to high short- and long-term returns once a correction in the valuation happens.

Forex Trading

Better leave this one to the experts, as fast-paced changes in currency rates are highly risky to sentimental traders and investors.

Trading in the forex market is more suitable for investors, thier able to cope with further pressures of currency trading.

Moreover, forex trading is also risky for investors seeking for more returns, as its margin requirements are the same with the traditional stock market.

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