Forex

Forex instruments are essential tools used in the foreign exchange market to facilitate trading. They include currency pairs, which are the primary instrument, allowing traders to buy one currency while simultaneously selling another. Other key instruments include forwards, which are customized contracts that lock in exchange rates for future transactions; futures, which are standardized contracts traded on exchanges; options, giving traders the right but not the obligation to exchange currencies at a set rate on a future date; and swaps, which involve exchanging principal and interest in different currencies. These instruments provide diverse strategies to manage risk and capitalize on currency movements.