If we talk about trading currencies and futures, it is immediately noticeable that they have many similarities. The first similarity is the use of identical charts and platforms in the trading industry. In addition, the same pricing methods are often used. It is thanks to this that traders can make an approximate forecast of how prices for various goods, indicators and exchange rates will change, while using only one account.
The second similarity is the same algorithm used in both currencies and futures trading, which allows you to successfully complete trades in the case of both upward and downward markets.
The third similarity is that in both cases, profit is based on the use of spreads, which significantly distinguishes trading currencies and futures from other instruments in the field of finance, which include various commissions and other fees.
It is also important to add that when buying the aforementioned financial instruments, the trader does not have rights to the asset. In this case, he can only speculate on changes in the exchange rate, and not buy or sell dollars / euros.
The same applies to futures trading, which does not provide an opportunity to buy stocks, but only to predict their future value.
In addition to a fairly large number of similarities, it is important not to forget that there are differences. The most important difference is that when trading currencies, a trader can trade only the currencies themselves, while in the case of futures trading, it is possible to trade not in one market, but in different ones. For example, the market for precious metals, stock indices, etc.
In addition, when trading currencies, there should always be the same lot size, since it involves the sale of one currency, and in return, the purchase of another. When referring to futures trading, a trader is given the opportunity to choose between several contracts, which may differ from each other in their currency, which in turn changes the price, and depends on the country in which the asset appeared.
Do not forget that factors such as supply and demand for the product itself significantly affect the development of the futures market, however, in the case of currency trading, its dynamics are influenced by events around the world in the field of finance, politics or changes in labor market.