Forex can be traded in various ways, such as

 

1.     Spot forex

i)                   simplest form of trading

ii)                  it gives you high liquidity

iii)                spread difference is not so big here

iv)               it runs 24 hours

v)                availability of free tools, like charts, economic calendar and so on


2.     Future market

i)                   it is created by Chicago mercantile exchange in 1972

ii)                  it has standardized size

iii)                since it is traded through centralized exchanges so its also very transparent in dealings

iv)               like spot, it also has a nice liquidity

       


             3. Option

              i) Like future it is also traded in centralized exchanges

             ii) Here market hours is limited

             iii) Liquidity is not so big here

4. Exchange traded funds

     i) An exchange traded fund or etf contains a set of stocks combined with some currencies.

    ii) These are created by financial institutions and can be traded like individual stocks

   iii) Here market is not open for 24 hours trading

    iv) since it contains stocks so it’s subject to trading commissions and other transaction costs