Newb questions on forex trading

Thanks Steve for the info - all new to me so Ill have to read up on things a bit. As far as the new TWS platform. Checked it out; looks better - I need to find a way to update my currect TWS to that so I can keep my layout.

SethArb,
I'm still not sure about trading gold at nite .4-.6 spreads dont seem that fun. I've gotten burned a few times with that so I'm a little gun shy.

DT, thanks for the info
 
Quote from SethArb:

taxes are different for FX spot ( cash ) and futures
More...
In theory, yes. In practice, there is no difference at all, if one is profitable for the year.

With a simple, internal election (out of IRC Section 988 into IRC Section 1256), your cash forex gains are subject to favorable 60% long-term / 40% short-term tax treatment, like futures. Unlike futures (which are always treated as Section 1256 contracts, by definition), one is not forced to make that election, should there be a loss for the year. From a tax perspective, cash forex gives you choice, and thus the best of both worlds.

http://www.greencompany.com/EducationCenter/GTTRecCurrency.shtml#futuresmag

Of course, both my comments and that article apply only to US taxpayers.
 
Quote from djxput:

2. Is there a easy way to figure out how much I am trading ie with the game account I type in like 10000 but I cant figure out how much I am actually trading. What does that 10000 represent. dollars?
More...
welcome to forex, Djxput! :) good luck with all your trading.

I may be able to help out a little with your second question.

here is a good calculator to figure out how much money you are putting up when you trade forex.

you can also adjust it to different leverage (margin) amounts.

example:

In the cash (or, "spot") forex market you can trade 5894-units of CAD/JPY for $100 at 50:1 margin.

best regards,

Coinz
 
You must log in or register to reply here.
Back
Top