One of the major advantages that online forex brokers provide you is to trade all major foreign exchange currency pairs 24 hours a day. This type of normal forex trading is referred as spot FX trading. The word spot trading refers to be the immediate delivery of the currency; but the settlement is completed within 2 business days after the trade execution to cover all paper work and transactions.

Forward FX trading works just like futures trading. It is trading of forex currency pairs for a future settlement date. Leading brokers like Orient Financial brokers offers quotes of both outright and broken-date forward FX quotes. Forward FX trading can help traders to hedge risks, meet specific cash-flow requirements, speculative needs and the offer the ability to replace existing open spot forex trading positions with a new forward forex trading position at a new rate.

Trading with forex brokers offering both online spot and forward FX trading services in Dubai also offer you the ability to combine both markets to get better control over trades and to minimize overall trading risks. As the spot forex market has high chances of downside risk because of high leverage rates, interest rate changes, slippage and overnight position holding, using forward FX trades can be a good idea. Also using forward FX trades can give the trader ability to develop a longer-term outlook. Traders can also use options contracts for high protection and low expense.