Spot

Over a single spot trade you exchange currencies instantly and own the underlying currency exposure, while futures are standardized contracts with expiries and exchange-cleared margin reduces counterparty risk; CFDs are bilateral derivatives that mirror price moves, offering flexible leverage but exposing you to broker counterparty risk and funding costs-understanding these differences lets you match your strategy, risk tolerance, and costs to the instrument you actually trade.Understanding Foreign Exchange (Forex) Definition of Forex The forex market is the global, over‑the‑counter marketplace where currencies are exchanged continuously during business days; average daily turnover is roughly $7.5 trillion, making it the largest financial…