Advantages of Trading FX Futures over Spot FX? Do they trend similar Technically?

Alright kent, it looks like its gonna be back to basics for you.

With your trade above, you enter the trade and pay a spread to enter and to exit, this will be approxx 3 pips from what I understand (especially if moves in your favor) with spot.

So with a spot broker you will make $460 on your trade profit, and you will lose roughly say $280. This is taking into account slippage and good ol "re-quote".

So you place an identical trade on the future at CME. You will make $496 profit from the winning trade and lose $254 from the losing trade. Round trip costs with the future are roughy $4.


Clearly som1 placing multiple trades would want to trade the future.
 
Thanks CBC. I appreciate it. If I can ignore the cost(on slippage)spreads, what distinct advantage in FxFutures over spotfx? And consider the large liquidity spot fx has while futures do not.
 
You don't need any more reasons kent. Placing a simultaneous trade on both and ending up with a difference like that in results is enough. You will find that this is the main #1 reason why traders won't use a bucketshop.

No other reason is neccesary. :).

Another thing is Bucketshops are well known for not letting people withdraw their money. Which is a very big issue. That won't happen over at AMP.
 
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