Spot, futures or forwards: what's the difference, and which do you trade?

FTC Community TeamStaff17 Sept 202697 views

Retail traders usually trade spot or CFDs. Futures trade on exchanges with expiry dates and fixed contract sizes; forwards are private agreements between two parties. The products behave differently even when the pair is the same.

Spot, futures or forwards: what's the difference, and which do you trade? — risk-reward diagram — A risk-reward ratio of 1 to 2

which product your account actually uses (it's in your broker's documents)
whether the product choice affects how you trade
anything that confused you about the difference

Spot, futures or forwards: what's the difference, and which do you trade? — candlestick anatomy diagram — The parts of a candlestick: wick, body, open and close

The spot, forwards, swaps and futures guide explains the four structures.

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