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What's better Futures or Forex and why?


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What's better Futures or Forex and why?

  #1 (permalink)
 Magiklair 
Alexandria, Minnesota
 
Experience: Beginner
Platform: Ninja trader
Broker: IB / IQFeed
Trading: Forex
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Hello,
I am trying to decide whether I should trade Futures or Forex.. Which is the better of the two and why? Such as best risk/reward etc. This question was asked previously, but quite a few years ago..
Thanks everyone for your time,
Brian

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  #3 (permalink)
Andersi
Kenmore, WA
 
Posts: 6 since Jun 2014
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Depends. Are you short term or long term trader? What size margins are you willing to put up?

I like futures because I'm a long time swing trader.

Oh and also it depends on your broker and what contracts you can trade whether they accept forex and/or future trades

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  #4 (permalink)
Turveyd
Birmingham UK
 
Posts: 336 since May 2014
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1 of each, GPBAUD forex and DAX (GER30), generally I find if 1 is moving the other 1 isn't, so gives me good odds on movement if nothing else.

There the most active I can find and DAX's spreads are really cheap.

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  #5 (permalink)
 CSC1 
Vancouver, Canada
 
Experience: None
Platform: IB
Trading: Futs
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Currency futures move tick for tick with spot FX, advantages of futures are a centralized limit order book (you trade the same spread and price that everyone does), and you also get a better look at order flow. I'd say go with spot FX if you're position trading as you don't have to roll your positions. You can also use both if you want to hedge futures with spot or vice versa. Lastly you get access to a wider variety of asset classes through a futures account should you decide to venture into commodities, indices, rates etc.

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Last Updated on June 13, 2014


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