Forex Futures Trading and Spot Forex Trading

[ashok]

contract between two parties that obligates both parties to a trade
of

a currency pair at some point in the future. The price point is set

beforehand, and the seller can own the currency once the actual
future

is written, or they may have a chance at risking the currency pair in

hope that it will be cheaper at some point before what is called the

settlement date.

Spot Forex is a pretty much the same thing as futures except that
with

spot fx the actual trade of the currency happens right at the point
of

trade or at a short time there after. The price point is determined
at

the point of trade as well and this is not much different than with

Forex futures. The actual physical exchange of currency doesn't
happen

right away with futures as it does with spot, and the exchange
instead

happens on what is called the delivery date, which is typically a
date

set in the near future.

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