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Trade Forex in Different Ways

Trade Forex in Different Ways
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Forex traders came up with different ways to speculate or invest in currencies.

The most popular of these are currency futures, spot forex, exchange traded funds and currency options. So, you don’t have to worry about where to trade currency, because nowadays it’s easy with Forex trading

Currency Futures

Futures are contracts that have a specific price on a future date to buy or sell an asset.

Futures contracts are well regulated and transparent due to their being standardized and traded on centralized exchanges, which makes information about transaction and price is easily available.

Currency Options

This financial instrument provides traders the option to purchase or sell an asset on the option’s date of expiration at a stipulated price without obligation. Though forex options have limitations as there is a limit to the market hours for options and the liquidity isn’t as high as that of spot or futures market.

Currency EFT

EFTs provides exposure to a basket or a single currency. Financial institutions create and manage EFTs that hold and buy currencies in a fund. The fund is then offered to the public as shares like in the stock market allowing individuals to buy and trade them. EFTs has transaction costs and is subject to trading commissions.

Spot Forex

The spot forex is the simplest, highly liquid with tight spreads and 24 hour operations in the market where immediate trade of currencies occurs applying the current market price. Only a very small deposit to your account is needed to open an account, making it easy for individuals to participate.