Forex currency trading guides for beginners - What is Forex?
The many different ways to trade forex
There are several different ways one can trade or speculate in the forex market. A couple are spot, futures, options and exchange-traded funds or ETFs.
Spot Market
The spot market is where forex trades are executed immediately or "on the spot", and is ditacted by the current market price. The best thing about spot trading is simpleness, high liquidity, tight spreads, and 24-hour operations. Anyone can trade in the spot market as you can open accounts for as low as $25 (which by the way is not recommended as you'll find out in later lessons). And also most spot market brokers will provide you with free tools such as chats and news.
Futures Market
When you trade the futures market, you are giving an order for a contract to buy or sell at a specified price on a date in the future. This kind of market was created by the Chicago Mercantile Exchange (CME) in 1972. The futures market is a well regulated one and trades are done through a centralized exchange.
Options Trade
Options is a tiny bit complicated and not recommended for everyone. In options trade, you are given the right or "option", but not obligated, to purchase or sell at a specific price on the options expiry date. If you choose to sell your option, then you will be obliged to purchase or sell an asset at the specified price on the expiry date.


