FX Futures were created in 1972 by the CME, or the Chicago Mercantile Exchange, and the concept is interesting. Essentially, because currencies are so well-regulated, the idea is that people can make money by buying and selling by a specific date. This helps to expand the forex market, and involves a new way to trade that might fit a certain trader’s style more than others.

Currency options can be lucrative as well, and gives the buyer an option to buy or sell at a specific price. The trader has to do this by the actual expiration date of the option. This certainly can make a trader money, but there are a couple of issues here. For one, unlike the actual forex market, the currency option market is not 24/7, which might not fit the lifestyle or strategies of certain traders. Also, the liquidity of the forex market isn’t there when it comes to options, because there it is a smaller market. These options are traded on actual exchanges, so again, for those who appreciate a 24/7 market – this might not work for them.

Spot Forex: This is “on the spot” trading. This is for the trader that is in the moment, spots a bottom, and purchases and sells because they see a specific opportunity. Of course, this can be affected by all sorts of things, from
charts, to theories, to news that affects a certain currency. Many people get instant gratification – and income – from utilizing this way of trading.
Currency ETFs are a basket of certain currencies, and are mainly used when it comes to institutional money, which naturally look to manage risk as much as possible. They are opened to the public, but funded by private institutions, and thus, also do not trade 24/7, so that is something to keep in mind, as well.