At the preschool it was mentioned that the future trading is something different than the forex and that it deals with assets. Then later on during the next lesson it said that there are many ways of forex trading and the most famous are four , spot, futures, options, and ETF
Now I got confused. The futures trading is different than the forex trading or it is part of it?
It depends on one’s frame of reference and definitions.
The question of whether it’s “different from it” or “part of it” is essentially an academic, semantic, almost philosophical one, and answering it in detail is unlikely to be particularly helpful to an aspiring trader in understanding either.
The key differences which will be relevant [I]to most people here[/I] are probably …
(i) Not all spot forex-pairs tradable have equivalent forex futures tradable;
(ii) Forex futures are centrally traded through an exchange and there’s therefore more information available about them (e.g. order-flow and volume) than is the case for spot forex;
(iii) The types of brokers used are typically different, in that most members of this forum are trading spot forex via a counterparty market-making broker rather than [I]really[/I] buying/selling any actual currencies when they trade;
(iv) Considerably more capital/margin is needed to trade futures (leverage is much lower).
Futures are probably not relevant to 99% of this forum’s members.