I am studying the spot market, what is the difference between all of them. I hear the terminology thrown around a lot but I don’t know what an option is or a “spread bet” (concerning the forex market) Forgive my ignorance, someone please enlighten me! Thanx
An option is a futures contract without a contractual obligation. You may exercise your right to fulfill the contract or you may allow it to expire.
Financially-speaking, spread betting is fairly similar to “standard,” contract-based trading. The difference is that you’re not buying or selling anything. You’re wagering on price vector. I don’t have much experience with spread betting, unfortunately.