What is the difference between Futures and FOREX?

Forex and futures are two different markets, though they do have some similarities. For instance, the pattern of trading on the two markets is similar, but there is a great difference when it comes to things that are traded on the markets. Forex is an international market where currency pairs are traded. By trading currency pairs, I mean the exchange of currency of one country for the currency of another country.

Traders on forex take advantage of the rise and fall of one currency against the other. On the other hand, futures are also similar, but it's basically the trading of futures contracts that will be delivered at a particular price at a certain date in the future.

Forex is currently the biggest liquid market in the world because its daily trading volume is about $5 trillion, whereas the daily trading volume of futures is less than that of forex.

Around the word, there are different markets that a person can participate in. Two of those include Forex and Futures. Forex stands for forex exchange. In this exchange system, currencies are exchanged from one country to a currency of another country. Out of all the markets, forex is the largest when it comes to liquids.

To participate in this exchange, a person does so by using the increase and decrease in currency. They use this change and compare it to what is going on in other markets. Furex stands for futures exchange. This market is different, for people buy future contracts and sell them.

Forex is the short form of foreign exchange, and it is simply the trading of currencies or the exchange of currency from one country for currency from another country. Forex is arguably the largest liquid market in the world. The activity of the currency traders by taking advantage of the fall and rise of currency pairs against one another is what is moving the market.

On the other hand, Futures is the short form of a Futures exchange. Futures is also a type of market where people buy and sell futures contracts, i.e., commodities and financial instruments that will be delivered at a specified price at a specified future time. One of the major differences between the two is the volume of trade on the two markets on a daily basis. While the daily trade on Futures is in billions, forex has a daily trade of more than five trillion dollars. Futures is not really an open market like forex, which is why small traders can't access it.