Source: how to trade forex
Different Ways for Trading in the Forex Market
The forex market is big and diverse, which is why it provides investors with many different ways to invest and speculate.
In this article we’ll deal with the most popular ways to take part in the currency market: contract market, futures and quoted funds.
Contract market
In this market, currencies are negotiated immediately and directly, according to its current market value. It’s a highly liquid, fast and simple market. Besides, it’s a very inclusive market, since an account can be opened beginning with a small sum of money.
Futures
These are buying or selling contracts for a given asset, with a price to be determined in the future. Such contracts are standard and are negotiated through a centralized exchange system. Thanks to this, the market can give guaranty of transparency and a correct regulation. Henceforth, the price and information related to the transaction are considered to be trustworthy.
Quoted funds
These fund contain a group of shares combined with currencies, which is why the trader has the possibility of diversifying his assets. Quoted funds are created by financial institutions and can work just like a share. Since such funds actually contain shares, they have limited trading hours, with opening and closings, as well as commission payments.