An Introduction to FX Derivatives

FX Derivatives trading is a cutting-edge way of taking on the global financial markets. FX Derivatives trading takes the analytical aspects of day trading and integrates it with traditional options trading. It is one of the most efficient means of trading, requiring relatively lower investments of time, making it ideal for the busy trader. Whenever you execute an order on Fort’s MT4 FX Derivatives platform, you engaging a platform that is streamlined to carry out your trades as flawlessly and quickly as possible.

TradingFX Derivatives has opened up the global financial market to everyone around the world and made simple the once complicated world of global finance. Where markets used to dictate for the trader their minimum investments, the Fort trader usingFX Derivatives will have the opportunity to determine exactly how much they want to invest in the market.

Breaking it Down

FX Derivatives trade has only two possible outcomes—”up,” when the price of your asset increases, or “down,” when it decreases. As compared to forex trading,FX Derivatives takes on a far simpler approach. WithFX Derivatives, you will know, as a trader, exactly how much you are risking and what your potential return is on any given trade. You will not have to worry about spreads or leverages as you will in forex trading, as your potential return on your trades is clearly laid out for you before you even begin your trade, in turn allowing you to invest with confidence with the knowledge of exactly what your monetary risk and rewards are. It is this certainty and simplicity that makesFX Derivatives trading as popular as it is today.

How it All Began

Every journey has a starting point, and withFX Derivatives trading, that starting point was in 1973. Before that year,FX Derivatives were only accessible through closed markets as a miniscule component of trading platforms. Since then, it has undergone several processes of change that has resulted in the powerful trading method we are familiar with today. The present state ofFX Derivatives trading operates on a far wider scale, with low barriers to entry and a nearly limitless potential for future growth.

1973: A Year of Change

One of the key players in the introduction and development ofFX Derivatives trading was the Chicago Board of Options Exchange (CBOE). The conception of this exchange through the Board of Trade allowed forFX Derivatives to become over-the-counter transactions. In the early years, the lack of regulation had a great impact onFX Derivatives trading, and after a considerable period of time, the Options Clearing Corporation took the necessary measures to provide better instructions and more transparency which allowedFX Derivatives to grow henceforth.

Even after the process of improvingFX Derivatives trading, it still accounted only for a small percentage of overall trades conducted. This changed considerably in 2008, when the US Securities and Futures Commission (SEC) accepted the proposals created by the Options Clearing Corporation.FX Derivatives were finally allowed to enter the major markets with the help of these proposals. The American Stock Exchange was the first to allowFX Derivatives, paving the way for the CBOE to do the same later. All this has led toFX Derivatives trading becoming the industry mammoth we see today.

2008: A New Era ofFX Derivatives

The widespread appeal ofFX Derivatives trading was spearheaded by the new regulations that were introduced in 2008 by the SEC. It saw the beginning of an era of a transparent way of tradingFX Derivatives, which was something that many traders saw as a tremendous plus. While the basics ofFX Derivatives had not seen much change since its conception, there was a sizable rise in the popularity ofFX Derivatives as a result of the changes in regulation and the advancements in technology.

What also heightened the worldwide appeal ofFX Derivatives was the progression of the quality ofFX Derivatives brokers. While many brokers demonstrated improvements as a result of SEC’s regulation changes, what contributed greatly to public’s impression ofFX Derivatives trading was a push for better service and better client consultation. It was an era where many trading platforms were rebuilt from ground up to offer traders superior customer service and a wider range of trading tools like market data and real-time news updates. These improvements in trading platforms is something that has not lost its momentum up to the present day. By any measure, we can expect the history ofFX Derivatives to inform its future, which tells us one thing—that it will continue to trend upwards in terms of quality, popularity, and efficiency.

Towards a Better Future

Fort is fully aware of how much the present and the future is informed by what happened in the past, which is why we have made it a point to fully understand the history ofFX Derivatives trading. By getting to the core of why and howFX Derivatives is as successful a trading vehicle as it is today, we can build a future that will only get better and better.

As history has shown, a lot ofFX Derivatives trading’s success comes from great leaps in technology, and this is why have invested much of our resources and time to developing a trading platform that will push the boundaries of what a trading vehicle can do. Our MT4FX Derivatives platform is the result of all those years of research and development, and we personally see to it that all our traders will have access to only the best trading technology the industry. In line with theFX Derivatives brokers rising up to the challenge of improving the past standards ofFX Derivatives trading, we at Fort do the same with our constant drive towards better customer service, better trading consultancy, and better trading education. We have learnt a great deal from the long history ofFX Derivatives trading, and we cannot wait to show you what we have in store next.