FOREX futures trading is similar to traditional equity and commodity futures. Both work the same way. A trader buys a contract to buy or sell a specific currency amount for specific dates. All changes in the currency that is treated as a trader profit and loss account.
Futures FX is a part of the global foreign exchange market, where shares than 3-4 trillion US dollars are traded every day.
As with traditional futures, Forex & futures, often serves as a hedge against currency fluctuations. But with modern and yet cheap Forex use futures trading software, speculators and dealers only on their potential for huge profits.
The strategies in the trade are no different than that used in spot markets. The most common strategies are based on technical analysis, as these markets tend to go well and clearly. These include common Fibonacci studies and other chart analysis, as well as more complex strategy by arbitration.
If used for security purposes, dealer must choose between futures and forward, a different kind of derivative.
How to choose right pair with "ordinary" Forex. Also, some currency pairs are slow for your trading style is too unstable.
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