The biggest banks are offering more trading options for forex traders, according to a report from the World Bank.
While there are some banks offering forex trading with more than one partner, a majority of the major banks, including JPMorgan Chase and HSBC, offer trading with multiple trading partners.
The report, which was released on Tuesday, said that for each bank, “at least one trading partner” is available to trade with clients, which can include other banks, institutional clients and foreign trading partners that offer a greater range of trading options.
While the banks offered some options, “most of the trading partners offered to customers were relatively expensive,” said World Bank President Jim Yong Kim.
The most common options available to forex investors are futures, swaps, options, options and options futures, according the report.
The main factors that affect the price of a stock, on the other hand, are the expected return of a futures contract, the expected maturity of the contract, and the expected market price of the stock, the report said.
For example, futures are a better option than futures options because the price will be higher than the expected future price of that stock, it said.