In fact, forex trading can be categorised as investment. In ancient times, before the internet became known, our grandparents are likely to be identified with the real investment investments such as gold, House, or land. Since the internet boom and online forex trading financial investments are widely known, began popular done.
Financial investments which we will discuss here are of course the investment of the foreign exchange (Forex or foreign exchange).
Forex investing is absolutely amazing. There are many alternatives to invest in currencies, including forex spot, forex futures or futures contracts, options, and forex exchange-a funds (ETFS) or mutual funds traded on exchanges. Each alternative has its own characteristics.
- Spot Forex - This is the spot forex market forex, which became the focus of our discussion in this Forex school. In this type of market, currencies are traded on the spot or directly using the market price which is currently underway. Spot Forex is very simple, if the spread small, illiquid, and operate for 24 hours. We do not need very much capital to open an account in this market, with just $ 50 we can already trade.
- Forex Future - The Indonesian term Forex Futures are futures contracts, is a contract to sell or buy certain assets, at a price that has been determined, the on-coming (that's why it is called futures aka the future!). Forex futures were first created by the Chicago Mercantile Exchange (CME) in 1972. A futures contract at the end of Economics and traded through the stock market, centered very transparent and orderly.
- Forex Options - Forex option trading is a type of financial instrument that gives the rights or options to the buyer to sell/buy an asset, but not obliging him to sell/buy the assets. If a trader is "buy" option, then he will be obliged to buy/sell these assets in a predetermined price level at any given time anyway. As forex futures, forex options are also traded on exchanges. But Forex trading in the form of this option has the disadvantage, that the limitation of hours for a particular option and option-not as good as the spot forex liquidity.
- ETF - This ETF is a new Member in the world of forex, which may consist of a group of stocks and combined with some currency. ETF trader is able to make its investments in several kinds of mendiversifikasikan assets. The ETF was created by financial institutions and can be traded like shares on the trading floor. As with any forex option trading ETF, limitations are marketnya not open 24 hours. In addition, because the ETF also contains the stock, then trading will be charged Commission fees and other transaction costs.
Although there are a variety of alternative investment forex, however most liquid is the forex spot and futures forex that lasted 24 hours and generally made outside the stock exchange. The presence of both these alternatives also allows a lot of people from different economic backgrounds in different parts of the world can participate in trading forex.