How to make a leveraged forex trade on IB TWS?

[helpme_please]

One question to the elitetraders here who are familiar with IB platform.

For IB clients who trade equities and forex, wouldn't it be more efficient use of cash to buy forex futures on IB instead of making leveraged fx trades since the latter will use up more available cash, leaving less for equities investment?

 

[JSOP]

One question to the elitetraders here who are familiar with IB platform.

For IB clients who trade equities and forex, wouldn't it be more efficient use of cash to buy forex futures on IB instead of making leveraged fx trades since the latter will use up more available cash, leaving less for equities investment?

Hmmn...always it's the other way around. Futures always require higher margin than spot.

 

[alexpun]

One question to the elitetraders here who are familiar with IB platform.

For IB clients who trade equities and forex, wouldn't it be more efficient use of cash to buy forex futures on IB instead of making leveraged fx trades since the latter will use up more available cash, leaving less for equities investment?

it is more efficient with futures as IB rape you with the interest rate (overnight forward points) if you hold the position overnight. (unless you get access to their FX auto swap program which required min 10MM positions)

 

[helpme_please]

it is more efficient with futures as IB rape you with the interest rate (overnight forward points) if you hold the position overnight. (unless you get access to their FX auto swap program which required min 10MM positions)

Thanks. Good point to note about the interest fees charged by forex brokers for the forex leverage. I don't know exactly how much IB charges for the leverage but I would expect futures which are regulated to have reasonable interest charges for the built-in leverage.

 

[legend4life]

it is more efficient with futures as IB rape you with the interest rate (overnight forward points) if you hold the position overnight. (unless you get access to their FX auto swap program which required min 10MM positions)

Where can one see what rates they charge overnight?