Forex vs futures: how to trade
You can trade forex and futures with us. Let’s look at how to do both.
How to trade forex
To trade forex with us:
- Open an account to trade CFDs on the FX market
- Pick the currency pair you want to trade
- Choose the way to trade your FX pair – forwards, spot or options
- Place your trade
Learn more about forex trading
We offer three ways to trade forex:
- Futures (forwards): trade a specific currency pair at a set future date. Your choice of currency pair would depend on which currency you believe will strengthen against the other by the set date
- Spot trading: purchase or sell forex ‘on the spot’. This means the exchange takes place at the same moment the trade is settled. Spot prices reflect the underlying market and have no fixed expiry
- Options: gain the right, but not the obligation, to buy and sell FX on a specific date in the future (called the expiry) at a specific price (called the strike price)
Note that CFDs are leveraged products, which means that you’ll use a deposit to open your position – while still getting exposure to the full value of the trade. Trading on leverage can be risky, as it magnifies profits and losses, and you can lose more than your initial deposit.
Learn more about the impact of leverage on your trading
If you’re not ready to trade forex at spot or futures prices yet, we’ve also got educational resources like IG Academy with free courses on how to trade. Plus, we offer a demo account – giving you £10,000 in virtual funds to build your confidence in a risk-free environment.
