2. Futures. Futures is a contract to buy or sell an asset at a certain price at a certain time, which is why we call it futures. Foreign exchange futures were initiated by Chicago Mercantile Exchange (CME) on 1972. In view of standardized futures contracts and centralized trading, the futures market is very transparent and strictly regulated. This means that price and transaction information can be easily obtained.
3. options. Option is an option that can provide the buyer with rights or selectivity, and it is also a financial instrument. It gives the buyer the right to buy or sell assets at a specific price on the expiration date of the option, but it is not an obligation. If a trader sells options, he or she must buy or sell assets on the expiration date of the options.
4. Exchange traded funds. Exchange-traded funds (ETFs) are the youngest members in the foreign exchange market. ETF may contain a series of securities and some currencies, which is beneficial for traders to diversify their assets. ETF is set up by financial institutions and can be traded freely like securities. Like foreign exchange options, the limitation of ETF trading is that it cannot be bought and sold 24 hours a day. At the same time, because ETF contains securities, ETF transactions also include transaction fees such as trading commissions.