Because the costs of a margin loan can pile up, margin traders often trade in a shorter time frame than spot traders. This type of trading is also considered riskier, because a losing margin trade can cost you more than your initial investment. Contrary to spot trading, futures allows you to short the market and [...]

The price for any instrument that settles later than the spot is a combination of the spot price and the interest cost until the settlement date. In the case of forex, the interest rate differential between the two currencies is used for this calculation. Ultimately, your decision to deal in spot contracts or derivatives will [...]