Is forex also contract based?

Beginner Questions
1

HI to all:8:
I am a pure newbie to Forex.
I read few points about commodities in web. When I reached BabyPips, I realized its my final place to study about market and developed interest in Forex. Thanks for this web site.
My doubt is in commodities (for example Silver) we trade with contract dates, like Nov 30th. Is it same for Forex too?
EUR/USD till Nov 30th and new Contract starts from Dec 1st?
Might be my question is foolish, sorry about that
thanks for attention
Tarun.

2

Firstly, I would forget the term ‘contracts’ when discussing Forex Trades, all trades have an unlimited lifetime and do not expire. The only fee charged or obtained from holding a Forex trade over night is the ‘Roll-Over Financing’, and even this is relatively small.

Like any discussion im sure there are some spread betting providers out their who will create some weird and strange ways of betting on the Forex to make it seem like that of a Contract, and it may well even have an expiry date. But conventional Forex trading through a Forex account is non contract based in terms of an expiry date.

Hope this helped.

3

Instead of contract i think we all call it position. Never wondered that too.

4

There are a number of ways to trade Forex. The most common is the retail spot market which is what 99% of the posters here are trading.

If for some reason, you like the more regulated futures markets, there are brokers who offer major currencies futures contracts with various expiry dates just like oil and gold futures. I think most major futures brokers offer these.

The other way is with CFDs (contracts for difference) which is like the spot market and offers flexible hedging and margin. Somebody else mentioned Fores spread betting which is a complete mystery to me.

5

Spread betting providers as opposed to true forex account providers can create there own currency contracts in isolation to the usual spot fx market orders. For example, you could by daily contact, monthly contact or yearly contact in gbp/usd. These do end at their noted expiry date, although they can also be closed prior to this date. I don’t like spread betting providers as the price data provided is open to artificial spikes as they are price makers.

8

HI to all
thanks for your kind info and valuable time.
regards
Tarun