Ways to Trade The Forex Market

Traders in the have discovered a good number of ways to invest or speculate in currencies. Among many options, we will rely on the most popular ones. They includes;

Exchange Traded Funds (ETF)

Futures

Forex

Options

Exchange-traded Funds

ETFs are the newest among them in the currency exchange market.
Exchange traded funds allows traders to invest (diversify) in different assets. It could be in the form of a set of stocks combined with some currencies. It was created by some financial institutions and can be traded through an exchange like the stock and forex- the later being traded through a broker.
The only difference between ETF s and the forex is that market is not open 24 hours while the spot fx is all round the clock.
Again, since exchange traded funds are made up of combination of stocks, with other currencies they are definitely subject to trading commissions and other transaction costs.

Futures

We are not here to say what tomorrow will look like,ehh?
But we are here to talk about how to make your future fruitful trading futures.
Futures are contracts to buy or sell a certain asset at a particular price on a future date.
Imagine it as buying or selling something now against tomorrow.
Futures were created by the Chicago Mercantile Exchange (CME) years back in 1972. This was when bell bottoms and platform boots were invoke.
The market is highly regulated and transparent since it is traded through a standardized and centralized exchange. Every price of asset, and the transaction information are made known to investors.

Spot Market

As the name implies, currencies are traded instantly, i.e "on the spot," using the current market price.
We love this market so much because of the numerous advantages.
It is simple, liquid, has tight spreads, and above all, a 24/7 operations. Anybody on this mother earth could participate easily in this market if only you could have access to the internet. With only 25 bucks, you have your account opened without stress.
I will not advice you to take up a $25 account shaaa.
There are great disadvantages if you run a small account. We will discuss more of this in the Capitalization lesson.
One more advantage of the spot fx is, most brokers usually provide you with free charts, news, and research tools.

Options

In Option, the buyer the right or option, but not the obligation, to buy or sell an asset at a particular price with expiration date for that option.
If a trader "sold" an option, then he or she would be obliged to buy or sell an asset at a specific price at the expiration date.
Options are traded just like the futures on an exchange, such as;
Chicago Board Options Exchange, cboe.com
International Securities Exchange,  ise.com  or
Philadelphia Stock Exchange. nasdaqtrader.com
The disadvantage in trading options is that market hours are limited for certain options and the liquidity is less compared to the futures or spot market.
I would like to introduce to you the innovative way to trade the option just by saying a YES or NO. This is called Binary Option.
BINARY OPTION
Binary options are simply tradable contracts that permit you to agree or disagree (BET) on whether an event will happen or not in economic market? It can generally be referred to as “YES or NO” bets

Binary options are standardized and focused on most financial markets including forex trading and as well as some economic events. As a trader, binary options can add a new dimension to forex trading.


Do you want to become a pro in trading binary option?
Here are some of the best and reliable option brokers online:

 24Option 

 BetOnMarkets

 AnyOptions


We are here to provide you with the necessary training to kick star with financial betting. Visit this blog without ceasing.