Currency futures vs forex trading analysis


Currency futures vs forex trading analysis


Continue Reading. Currency futures contracts are legally binding and counterparties that are still holding the contracts on the expiration date must trade the currency pair at a specified price on the specified delivery date. A:The forex market is a very large market with many different features, advantages and pitfalls. Forex investors may engage in currency futures as well as trade in the spot forex market.

The difference between these two investment options is very subtle, but worth noting.A currency futures contract is a legally binding contract that obligates the two parties involved to trade a particular amount of a currency pair at a predetermined price (the stated exchange rate) at some point in the future. Those looking to profit from fluctuations in currency valuations have two primary trading forums, the spot market often referred to Forex or simply FX, or currency futures which are primarily traded on the Chicago Mercantile Exchange.

Each alternative has advantages and disadvantages associated. As a trader, it is imperative that you are aware of these differences and are comfortable with where your trading account is housed.While there are several articles, blogs, etc. written on the advantages of Forex vs. What if I told you currency futures vs forex trading analysis the foreign currency market is larger than all of these markets put together.

The latest estimates show that the foreign exchange market trades about 2 trillion dollars worth of currencies each 24 hour period last year.Currency Cash Trading Vs.




Currency futures vs forex trading analysis

Currency futures vs forex trading analysis


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