What is FX derivatives trading?

 

This type of trading relies on the frequent fluctuations of exchange rates in the market. Traders can either Call (buy) or Put (sell) an asset within a given timeframe, which could be within a minute up to an hour. A “Call” is placed when rates are predicted to rise while a “Put” is used when rates are forecasted to fall.

In times of heightened volatility, one of the main strategies traders are turning to is FX derivatives. This type of trading focuses on the constant fluctuations of the exchange rates in the forex market. Traders can make a decision by buying (Call) or selling (Put) in a specific timeframe; with these timeframes spanning from one minute to an hour.

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