1.7 Forex Spot Trading Vs. Futures Trading

forex versus futures trading representation
When we talk about comparing trading with Futures market with Forex, we are actually comparing retail spot Forex trading with Futures trading.  As we have seen in the lesson "Types of Forex Trading", even Forex is traded as Futures. However, the retail trading in Forex markets is only Spot trading.
 
 
Before we go ahead with the comparison, let's have a recap of what is Futures trading. In Futures markets any contracts for buying or selling takes place at a specified future date and specified price. While in spot markets the trading place immediately at the current price.
 
 
The retail spot Forex market enjoys a number of advantages over the Futures markets, too just as it did in the case of stocks.
 
 
We’ll make this short with just a table, easy for you to understand now that you’ve seen what Forex did to stocks!
 
Table showing the comparison of spot forex and futures trading
 
 
No prizes for guessing who won here.
 
 
  • Forex versus Futures Trading
 

 

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