Foreign Exchange Instruments – what every trader needs to know about them

Foreign Exchange Instruments – what every trader needs to know about them

The FX market is the trading of currencies. But do you know how many alternatives you have at your disposal should you be interested to try it out?

Short answer: quite a few. In this second part of our series on financial instruments, we will talk about Forex Exchange Instruments and their 5 primary types: spot, options, forward, swap, and futures.

Foreign Exchange Spot (FX Spot)

The FX spot transactions involve a settlement between two counterparts and are fairly straightforward to understand. Here's what they have in common: