There are several different ways inwhich one can trade forex. Forex can be traded in different ways depending on what is convenient for you or what interests you for your investment. The most popular ways to trade forex include: forex spot, futures, options.
Trade forex with the Spot market.
To trade forex under spot markets, currencies are traded immediately or on spot using the current market price.
Spot forex trading is an agreement between two parties to buy one currency against selling the other currency at an agreed price for settlement on the spot date.
It’s simple, highly liquid and has very low spreads, and is around the clock operations. It’s a short term trade and very easy to participate in the market since accounts can be opened with as little as $30. Another advantage is that brokers usually provide news charts and research for free.
Futures are contracts to buy or sell at a specified amount of a given currency at a predetermined settlement price on a set date in future. Currency future contracts specify the price at which currency can be bought or sold at a future date. Futures were created by the Chicago Mercantile Exchange (CME) in 1972. They are standardized and traded through a centralized exchange. The market is very transparent and well regulated, therefore, transaction and price information is readily available
An option is a financial instrument that gives the buyer the right or the option, but not the obligation to buy or sell an asset at a specified price on the options expiration date. Most trading is over the counter(OTC) and is lightly regulated but a fraction is traded on exchanges like; International Securities Exchange, Philadelphia Stock Exchange, Or The Chicago Mercantile Exchange For Options On Futures.
How long you should hold an open position, is a personal thing for all traders. The decision is all yours. You know what your goals are as a trader, the kind of strategy you use to trade. All this starts from what you are? and What you want? If I am to answer, this...