Forex Fx Futures

Forex is the abbreviated term for foreign exchange which involves the multi-trillion dollar per day trading of currency pairs against each other. This market is virtually a 24 hour market that follows the sun beginning in Sydney, Australia and working around the world to New York beginning on Sunday at 5PM ET through Friday at 5PM ET. The 24 hour nature of forex has made it very popular with traders who do not have time to trade during normal business hours.

Futures contracts are a means for the user and producer of a particular commodity to contract for delivery of the commodity at a future date at a specific price. However, the futures markets are mainly used by producers and consumers to hedge against adverse price risk and for speculation purposes.




Forex and futures options give the purchaser the right but not the obligation to buy or sell the underlying forex pair or commodity. A put option gives the right to sell and a call gives the right to sell at a specific strike price. The purchaser of the option is at risk only for the premium paid for the option and any commissions or fees involved.

Forex, futures and their options carry a significant risk of loss and are very speculative in nature. Investors should only use risk capital when investing in these markets. Forex does not trade on an exchange