There are 4 basic types of foreign exchange trading as stated below:

- Forward Currency Trading: In this type of trading the actual delivery of currencies is effectuated anywhere between 3 days to 3 years after the actual trade. The rate of currencies will be the same as it was during the trading.

- Spot Trading: In spot trading the exchange of currency takes place within two days of trade.

- Future Trading: In future currency trading, like forward trading the actual exchange takes place in future. But here the rate will be according to the time of exchange and not the time of trading.

Options Trading: Here the buyer has the option to purchase currency at the price fixed at the time of trading during a particular period.

Day trading is peculiarly characterized by quick money and high risks. Before you start it is vital that you understand the day trading jargons like, futures, options, delta, etc. Know what is going to be the impact of macro economic factors like rise in interest rate, inflation, etc. is going to be on the market. Also do not go literally with the term day trading. It is not necessary to trade daily; you can trade just a few days in a month if you want. With day trading it is important that you be cautious and alert. It is important to know when to stop or withdraw. You must invest only a small amount of your surplus to begin with. Also concentrate on a few scrip and expand your portfolio slowly as you master the art of day trading.