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currency future vs spot currency?


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currency future vs spot currency?

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  #11 (permalink)
 Itchymoku 
Philadelphia
 
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I do however like to swing trading forex but I do it differently than how I scalp breakouts on futures. It's almost impossible to scalp forex the way I'd do it on lets say crude oil because sometimes it takes hours for me to even break even considering spread when the currency is in a range.
On another note, spot forex doesn't have the same amount of over night risk you see with stocks if you avoid the weekend which is why I enjoy trading it for long periods of time. In addition to above spot forex is attractive to swing trade because you can trade such small size and you don't have to pay a standard flat 5+ dollars in commissions like you would with a stock.

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  #12 (permalink)
Pippi
Vienna Austria
 
 
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The minimum tick size on the CME is 1 pip - and then you pay commissions. You can do a lot better than that in spot, as far as transaction costs are concerned. Also, since the 6B future(gbp/usd) is half size, you are paying 2x the comms effectively on that one.

CME Europe will start with fx contracts in September - this should be a lot better. Tick size is half-pip, and contract size 100K on all pairs, and cheaper fees than in Chicago as well. I hope that they can attract enough liquidity providers, then this will be a good alternative to spot.

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  #13 (permalink)
 Jura   is a Vendor
 
 
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Pippi View Post
(..)
CME Europe will start with fx contracts in September - this should be a lot better. Tick size is half-pip, and contract size 100K on all pairs, and cheaper fees than in Chicago as well. I hope that they can attract enough liquidity providers, then this will be a good alternative to spot.

That's interesting. Do you have a source or link for that? The information on the CME Europe website is quite limited.

Edit:
Just saw that Eurex starts with 6 FX futures in October with the same contract specification (100k underlying, 0.5 pip price movement). See their tweet here. And the Eurex circular here.

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  #14 (permalink)
 acbrasil 
somewhere, brazil
 
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Itchymoku View Post
I do however like to swing trading forex but I do it differently than how I scalp breakouts on futures. It's almost impossible to scalp forex the way I'd do it on lets say crude oil because sometimes it takes hours for me to even break even considering spread when the currency is in a range.
On another note, spot forex doesn't have the same amount of over night risk you see with stocks if you avoid the weekend which is why I enjoy trading it for long periods of time. In addition to above spot forex is attractive to swing trade because you can trade such small size and you don't have to pay a standard flat 5+ dollars in commissions like you would with a stock.

yup, and most non-US forex accounts let you trade gold, oil, the eminis. About the only thing I can't find with a non-US forex account is the Russell 2000.

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  #15 (permalink)
 JGSmith 
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I have never looked into doing currency futures with my strats. Once I landed on forex however many years ago, I just stuck with that without putting much more thought into it. It is in my list of to one day look into currency futures to see how it would work with what I do - but that is some day...

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  #16 (permalink)
arrowTrader
Northern California
 
 
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In addition to what's already been said, another advantage to trading futures is that your account funds are consolidated with one broker so you have more product choices to trade with your capital. You also have the opportunity to trade intermarket spreads between currencies and related markets (e.g., bonds, precious metals).

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  #17 (permalink)
eagle75
kuwait city
 
 
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in futures there's the major pairs that only have the big volume
but in spot you have the volume you need in all majors and crosses 24 hrs !!
also the leverage issue .. use ecn regulated (ctrader) brokers that have good reputation ..

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  #18 (permalink)
 jonc 
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josh View Post
I can only assume he means that there are more cross pairs to trade than are offered in most futures markets, not that there are more opportunities in EURUSD spot than 6E, for example.

To me the biggest advantage in spot are pairs which are not available in the futures.

if all the pair are available in the futures as the spot, i would only day trade the futures.

even for pairs like EUR/GBP, you cannot get the same trade by just trading 6E and doing the opposite in 6B

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  #19 (permalink)
 TraderLJW 
Salt Lake City Utah/United States
 
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I found this thread very interesting. I have trading futures currencies before, but never Forex, so I had very similar questions. Thanks to everyone that both started the thread and responded to it.

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  #20 (permalink)
praptopro
sumbawa+indonesia
 
 
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I think that trading in spot currency is more interesting than in futures. In spot currency, we are able to trade in anytime and in any hours because the volatile of spot currency really tight.

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