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.

This entry was posted on Thursday, September 10th, 2009 at 2:34 pm and is filed under Trading. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.