Any advantages trading spot over futures? - Currency Futures | futures io social day trading
futures io futures trading


Any advantages trading spot over futures?
Updated: Views / Replies:9,219 / 36
Created: by jonc Attachments:5

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 5  
 
Thread Tools Search this Thread
 

Any advantages trading spot over futures?

  #1 (permalink)
Elite Member
australia
 
Futures Experience: Beginner
Platform: NinjaTrader
Favorite Futures: -
 
Posts: 300 since Sep 2010
Thanks: 123 given, 137 received

Any advantages trading spot over futures?

Hi guys, are there any advantages in trading spot forex over futures. Futures has tighter spread and is more precise in pricing.

The only one I can think of is you can take a huge size in spot (or a smaller size than 1 future contract). But I suppose for most retail traders, futures is liquid enough. I doubt that many here trade more than 10 lots at one go.

Is there any other reason why I should be trading spot instead of futures?

Reply With Quote
 
  #2 (permalink)
Senior Member
Fullerton, CA
 
Futures Experience: Intermediate
Platform: NT
Favorite Futures: Futures
 
Tundi's Avatar
 
Posts: 201 since Dec 2010
Thanks: 33 given, 98 received


jonc View Post
Hi guys, are there any advantages in trading spot forex over futures. Futures has tighter spread and is more precise in pricing.

The only one I can think of is you can take a huge size in spot (or a smaller size than 1 future contract). But I suppose for most retail traders, futures is liquid enough. I doubt that many here trade more than 10 lots at one go.

Is there any other reason why I should be trading spot instead of futures?

I think you answered your question.

Big players trade forex since the liquidity is deep.

Reply With Quote
 
  #3 (permalink)
Trading Apprentice
Dana Point
 
Futures Experience: Advanced
Platform: ensign, IB
Broker/Data: IB, Lightspeed
Favorite Futures: stocks
 
mRoss21's Avatar
 
Posts: 35 since Nov 2009
Thanks: 11 given, 16 received


The main reason to trade forex is the leverage. If you have a small account you can get a little more bang for your buck. That's what attracts nubies to forex.

If you can afford it, trade futures. A much cleaner market to trade.

Reply With Quote
 
  #4 (permalink)
Elite Member
Honolulu, Hawaii
 
Futures Experience: Intermediate
Platform: NinjaTrader
Broker/Data: ATC/TT, AMP/Zen-Fire, AMP/CQG
Favorite Futures: TF
 
bluemele's Avatar
 
Posts: 2,547 since Jun 2010
Thanks: 3,806 given, 2,826 received


mRoss21 View Post
The main reason to trade forex is the leverage. If you have a small account you can get a little more bang for your buck. That's what attracts nubies to forex.

If you can afford it, trade futures. A much cleaner market to trade.

Agree, spot is too easily manipulated by your broker/market makers.

Reply With Quote
 
  #5 (permalink)
Elite Member
SF Bay Area, CA
 
Futures Experience: None
Platform: SC
Favorite Futures: Futures
 
Posts: 204 since Nov 2010
Thanks: 136 given, 175 received

The futures market is regulated, transparent and you do not have counter party risk. The spot market is none of these things.

Reply With Quote
 
  #6 (permalink)
Elite Member
australia
 
Futures Experience: Beginner
Platform: NinjaTrader
Favorite Futures: -
 
Posts: 300 since Sep 2010
Thanks: 123 given, 137 received

Guys, I think there is another advantage of spot forex over futures. But probably the type of traders mainly here in futures.io (formerly BMT) might not find it applicable.

The advantage is the forex pairs available. There are trading strategies that relies on trading a basket of currencies which move in tandem to each other. You will not be about to trade that way using the futures alone.

Reply With Quote
The following 3 users say Thank You to jonc for this post:
 
  #7 (permalink)
Elite Member
Australia
 
Futures Experience: Advanced
Platform: NinjaTrader, Multicharts
Favorite Futures: Spot Forex, Gold, Silver
 
Posts: 176 since Oct 2010
Thanks: 114 given, 114 received

EDIT - Deleted my questions. A web search found my answers. My Google Fu is strong!!

Reply With Quote
 
  #8 (permalink)
Trading Apprentice
Rio di Janeiro
 
Futures Experience: Intermediate
Platform: Tradestation
Favorite Futures: forex
 
Posts: 11 since Sep 2011
Thanks: 2 given, 2 received

the magic so to say why big players trade with spot rather than futures is that spot contains higher liquidity, meaning you can gain higher profits at the end of your trading session/s and that so far it is kept as OTC and not controlled, except for the no hedging and the lower leverage requirements in the states

Reply With Quote
 
  #9 (permalink)
Blockchain Enthusiast
Perlis, Malaysia
 
Futures Experience: Beginner
Platform: TradingView
Broker/Data: Bitmex
Favorite Futures: Bitcoin
 
Posts: 96 since Aug 2011
Thanks: 114 given, 16 received


Tundi View Post
I think you answered your question.

Big players trade forex since the liquidity is deep.


Eduard Murton View Post
the magic so to say why big players trade with spot rather than futures is that spot contains higher liquidity, meaning you can gain higher profits at the end of your trading session/s and that so far it is kept as OTC and not controlled, except for the no hedging and the lower leverage requirements in the states


Quoting 
A professional firm will not let you trade on forex/currencies so forget about those markets to begin with. You would most likely be offered S&P, EuroStoxx or Bunds, so if you want to learn to trade as the professionals do, you need to be thinking about working with one of these markets.


Quoting 
forex has no centralized exchange, no transparency on traded volume and counterparty risk in that the broker is usually also the market marker (excluding ecns) and can also go down with your money as a creditor (ala Refco FX). A prof. firm would generally trade currency futures over cash forex

I'm not sure how truth to that though

Reply With Quote
 
  #10 (permalink)
Trading Apprentice
Rio di Janeiro
 
Futures Experience: Intermediate
Platform: Tradestation
Favorite Futures: forex
 
Posts: 11 since Sep 2011
Thanks: 2 given, 2 received



SevenEightSix View Post
I'm not sure how truth to that though

I suppose it is how you like to take the things. It is true that FOREX is not traded on any centralized exchanges like the stock market but this is the beauty of it because of that this market is that liquid and everybody want to tap into it and gain profits. As for the other quote concerning the professionalism of the traders - well there are different types - the market is pretty differentiated to big institutional investments, banks, hedgers, then intermediaries and then retailers. So to say that professional firms will prefer only the stock or the bond or the futures market is it pretty understated.

Reply With Quote

Reply



futures io > > > > Any advantages trading spot over futures?

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

Linda Bradford Raschke: Reading The Tape

Elite only

Adam Grimes: TBA

Elite only

NinjaTrader: TBA

January

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
Trading spot fx euro using price action Adamus Trading Journals 844 July 1st, 2016 09:22 PM
Serious Spot FX Trading wiosna Reviews of Brokers and Data Feeds 27 June 8th, 2011 02:46 PM
Advantages WIN7 vs. XP ? max-td Tech Support 24 December 8th, 2010 10:03 AM
Different Bar Types: Advantages and Disadvantages ct1942 NinjaTrader 0 January 20th, 2010 01:20 AM
Trading Currency Futures vs. Spot suchen Traders Hideout 3 December 9th, 2009 12:39 PM


All times are GMT -4. The time now is 02:06 PM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-12-12 in 0.13 seconds with 20 queries on phoenix via your IP 54.163.209.109