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Types of Forex trading tools

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By jonathansmith


Types of Forex trading tools
Types of Forex trading tools

Types of Forex trading tools

Here is all the types of Forex trading tools:

1. Spot: A spot transaction is a direct exchange between the 2 currencies, has a very short time frame and involves cash and not a contract.

The term "spot" is not specific forex, we called Spot Market which is a market for goods that are traded immediately, ie on the spot. Spot Forex Examples are talking here about the forum, briefly called "Spot". Retail forex is all spot forex also. That is what we do with ordinary people is spot forex brokers.

Another example with no connection to Forex e: Energy Spot is an energy market where power producers sell their excess energy quickly available to buyers. Negotiation about price lasts a few milliseconds and then the energy being provided few minutes later.

2. Forward transaction: This type of transaction represents an exchange of money does not occur immediately but at a specified future date. For example several days or several months or years later. A seller and a buyer to understand the exchange rate at a certain date in the future and the exchange itself takes place on that date and the amount fixed whatever the exchange rate at that time.


3. Futures: This type of tool is actually a forward trading but that is standardized. The differences were small and a little more and relevant for us to spot the forex. Those interested may learn more through a simple search on Google: Futures Vs. Forwards (http://www.google.com/search?hl=en&q=Futures+vs+Forwards).

4. Swap: Or currency swap is when two sides understand each other to change a quantity of one currency for another, and after a while to return the original transaction quantities.

5. Options: Or FX options is a derivative where the owner has the right but not obligation as a specific date to change money from one currency into another currency at a preset rate.

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