Forex spot a mugs game?

[yonnie]

I hear its better to trade forex futures than the spot market.

What are the pros and cons of both?

 

[>Apocalypto<]

Re: forex spot a mug's game?

I hear its better to trade forex futures than the spot market.

What are the pros and cons of both?

LOL its a mugs game to trade anything unless you know what your doing.

FX is not the easiest thing to trade as its a 24hour market, sensitive to everything. highly liquid, with lots of swings that sometimes mean what they swing too, and other times change straight back.

I trade the AUD/USD USD/JPY GBP/USD AUD/EUD and others its great cuz u will have many oppertuitys while the stock markets are doing nothing. opportunities on the short and long side everyware u look in any time frame.

now futuers vs spot i can not comment much on, I only trade spot. it never expires and there is no open interst drives on expiry what you see on spot is what u get. spreads can change on some brokers but i find IG very good on there FX CFD's.

I would not look at trading futures contracts over FX after trading spot and also trading traditional futures.

Be warned anyone looking to start, FX can change like the wind many pairs are influenced by each other and each others economic news THINGS CAN CHANGE FAST! trade mini FX to get your toes wet.(I am) Having 5 or more mini's open will still make the game damn fun! 10x mini contracts = 1 full.

Good trading.

 

[wayneL]

Re: forex spot a mug's game?

Futures are cheaper to trade and you can trade the options, but can lack liquidity out of US business hours.

Spot, more pairs available, smaller lots available for smaller accounts.

Futures are my preferred vehicle.

 

[>Apocalypto<]

Re: forex spot a mug's game?

Futures are cheaper to trade and you can trade the options, but can lack liquidity out of US business hours.

Spot, more pairs available, smaller lots available for smaller accounts.

Futures are my preferred vehicle.

Wayne,

the brokerage cost is cheaper then the spread in and out? say 1 contract on the AUD/USD spread of two pips 20US?

 

[wayneL]

Re: forex spot a mug's game?

Wayne,

the brokerage cost is cheaper then the spread in and out? say 1 contract on the AUD/USD spread of two pips 20US?

Well, marginally cheaper. AUD futs are a bit thin, so spot prolly better on that pair.

Euro is one tick (usually) + $3 brokerage.

If you're getting 2 pips spread these days, then not much difference in cost. It's still the options that clinch it for me. But no argument against spot at all.

 

[>Apocalypto<]

Re: forex spot a mug's game?

Well, marginally cheaper. AUD futs are a bit thin, so spot prolly better on that pair.

Euro is one tick (usually) + $3 brokerage.

If you're getting 2 pips spread these days, then not much difference in cost. It's still the options that clinch it for me. But no argument against spot at all.

Cheers Wayne,

One bad part of spot is that some brokers can change the spread based on volatility. I also read about hidden costs as well so some doge operators.

I stick to the low spread mayors and minors don't dabble in the exotics or Scandinavians. Spreads can be killers.

 

[yonnie]

Re: forex spot a mug's game?

thanks guys for your ops.......

no difference in costs then, apart from looking at a good broker with narrow spreads?