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Welcome to the Forex Futures & Options
Education page!
Forex is the abbreviated term for foreign
exchange which involves the multi-trillion dollar per day
trading of currency pairs against each other. This market is
virtually a 24 hour market that follows the sun beginning in
Sydney, Australia and working around the world to New York
beginning on Sunday at 5PM ET through Friday at 5PM ET. The
24 hour nature of forex has made it very popular with
traders who do not have time to trade during normal business
hours.
Futures contracts are a
means for the user and producer of a particular commodity to
contract for delivery of the commodity at a future date at a
specific price. However, the futures markets are mainly used
by producers and consumers to hedge against adverse price
risk and for speculation purposes.
Forex and futures
options give the purchaser the right but not the obligation
to buy or sell the underlying forex pair or commodity. A put
option gives the right to sell and a call gives the right to
sell at a specific strike price. The purchaser of the option
is at risk only for the premium paid for the option and any
commissions or fees involved.
Forex, futures and
their options carry a significant risk of loss and are very
speculative in nature. Investors should only use risk
capital when investing in these markets. Forex does not
trade on an exchange. Futures investors are subject to
unlimited risk to the upside and substantial risk to the
downside. Past performance is not indicative of future
results.
Feel free to request more information
about FOREX, futures or options education by filling out the
information form below.
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