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futures market. The forex trading in the spot market always has been the largest market because it
is the 'underlying' real asset that the forwards and futures markets are based on. In the past,
the futures market was the most popular venue for traders because it was available to individual
investors for a longer period of time. However, with the advent of electronic trading, the spot
market has witnessed a huge surge in activity and now surpasses the futures market as the preferred
trading market for individual investors and speculators. When people refer to the forex market,
they usually are referring to the spot market. The forwards There are actually three ways that
institutions, corporations and individuals trade forex: the spot market, the forwards market and the
and futures markets tend to be more popular with companies that need to hedge their foreign exchange
risks out to a specific date in the future.
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