Forex trading
This happens only for global economic reasons. This type is mainly related to international financial transactions. Trade takes place all day from one country to another. Most countries have an economic relationship with each other. As the whole country does not rest at the same time, currency trading continues throughout the day and night between countries. Some examples of trading trades are paying for imported goods, taking or paying foreign loans, buying goods or services abroad, etc. Forex trading accounts for 95% of all day trading.
Forex retail
This is the most common type of Forex or currency trading we do as an individual trader. Also called speculative trading. This type of trading is done only to make money. Traders generally speculate or assume currency price movements and plan to strategically buy or sell currencies. For example, if you think the dollar will rise against the Japanese yen, you can buy a pair of USD / JPY at a low exchange rate and then sell it at a higher price (if the market prefers) to make a profit. But if you buy the yen against the US dollar (or sell the US dollar / Japanese yen) and the US dollar rises, you will be in a losing position. It is therefore important to be aware of the risks associated with Forex trading and to make their decisions very carefully.
Types of Foreign Exchange Trading Market
Depending on the nature of trading practices, Forex or the foreign exchange market can be divided into three main types:
Spot Market: The Spot Market is the largest foreign exchange market. The spot market is where the currency is bought and sold at the current market price. We usually talk about the spot market when we talk about forex or currency trading. Here the price is determined by the demand or supply of the appropriate currency. At the point of trading the real currencies are traded, and when the contract is concluded it is called "current business". While the definition of a spot market says nothing about the size of a trade party, contracts are actually done a lot.
Future Market: The futures market does not sell real currencies, but contracts are bought and sold off-exchange (OTC) between the two parties. The terms and contracts are determined only by these parties. One type of this market is Binary Options Forex Trading (which is different from stock trading options).
Future Market: The future Forex market is a place where forward contracts are bought or sold for the purpose of exchanging a certain amount of currency at a predetermined price at a specific date in the future. In the futures market, futures are based on a standard contract size. The futures market is very similar to the futures market, except that all future contracts are legal contracts and have a specific expiration date, after which the currency must be exchanged. Today, many traders use futures as a way to mitigate market risks, such as hedging against open positions to stop the market.
Why trade in foreign currency or currency?
