What currency markets are available?
For the average retail investor, their are 4 types of forex trades available.
Spot - The spot market has by far the largest volume in the forex market. Spot trades are cash only (no contract) interest is not accrued, and the deliverable exchange is nearly instant.
Futures - Currency Futures generally trade 3 - 6 months from delivery (although the speculator does not have to hold until delivery). Unlike the spot market, currency futures trade on regulated exchanges such as the CME.
Options - Forex options generally behave like currency futures - they trade in the months before expiration, and on exchanges. The forex options market is the largest of any options markets.
ETFs - Exchange Traded Funds (ETFs) are funds that are managed to mimic a market. In recent years, some ETFs have been established to mimick forex trades. ETFs trade like stocks, and so margin and leverage does not apply for the ETF investor.
