Previously we discussed the various and most obvious methods to trade in forex. This involved discussing a few, somewhat accessible, markets. Here, we will continue on our discussion.
We did discuss the forex markets previously, but not where to find them. Not all of these markets are highly available. For some places, you have to look further.
So, for spot markets, where can you look? Anywhere really, is the simple answer. Plenty of online exchanges, physical currency exchanges, and banks are available. This is because these services are for everyone, not just traders.
Futures contracts are a bit more exclusive but plenty are available. You can find them on exchanges. Usually, online brokers can set them up for you, depending on the broker, of course. You could set up your own futures contract, but this is risky. Especially if you do not know what you are doing. Therefore, it is best to stick with standard contracts.
Options contracts are a bit more exclusive still. They are still plenty available though. Here are a few: Philadelphia Stock Exchange (PHLX), Chicago Mercantile Exchange (CME), International Securities Exchange (ISE).
In case you are not aware, ETFs are securities. They are sort of like funds that base their value on many underlying assets. However, you can exchange them just like any other security. They are also highly flexible, and one can also use them for currencies. Usually, it tracks a single currency, though, against the dollar. However, a basket of currencies is also available.
However, this is a more speculative realm, but this can be beneficial. The ETFs base their value on spot exchange rates. When you buy into ETFs, you are betting against and for the two currencies simultaneously. This can streamline the process somewhat, as these are usually separate processes. So, you make profits when one goes up, and losses when the other goes down. However, if the opposite happens, you have to take the losses. You are at more exposure with this security, overall.