What is the actual instrument traded with retail FX brokers

External question — Quantitative Finance Stack Exchange Author: rmrndr Original post: https://quant.stackexchange.com/questions/50538 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. This question may seem inappropriate for this StackExchange but it's the pricing and actual return dynamics that define the instrument so you guys seem the most knowledgeable on this topic. I was reviewing the different groups of the Classification of Financial Instruments codes (CFI, norm ISO 10962:2015) and struggled to identify how a currency pair position held with a retail foreign exchange broker should be classified. It is definitely not a spot transaction since the notional amount of the lot is never actually settled. Is it then an "Entitlement" >> "Mini-future certificates/constant leverage certificates [RF]" ? It is defined on Nasdaq website as "A leverage certificate is a certificate issued by a bank or financial institution. The leverage certificate reflects the change in the value of the underlying assets with leverage. The underlying asset can be, for example, a share, a bond, a commodity, a currency or a combination of different underlying assets. Leverage certificates usually have a long maturity with constant leverage that is rebalanced on a daily basis. Leverage certificates give the possibility of returns in rising markets (referred to as Bull) and falling market (referred to as Bear)" It looks pretty similar to what a leveraged position on a currency pair is but I have the feeling that constant leverage certificates are really specific instruments that do not cover the case I'm mentioning. Or is it a CFD? But retail brokers generally make a distinction between CFDs and currency pairs in their product offering... It is classified in the CFI standard under "Forward", "Foreign exchange", Attribute 3 "Return or payout trigger": CFD It could be a spread bet, defined on Investopedia as Spread betting is a derivative strategy, in which participants do not own the underlying asset they bet on, such as a stock or commodity. Rather, spread bettors simply speculate on whether the asset's price will rise or fall, using the prices offered to them by a broker. It is classified in the CFI standard under "Forward", "Foreign exchange", Attribute 3 "Return or payout trigger": Spread-bet This classification may seem the most accurate but why does it fall under the "Forward" category? Thanks a lot for your help :)