what's the advantage of fx over FX futures?

[chipmunk]

OK...so why would anyone trade spot fx over FX futures market?

thx

 

[southall]

Quote from chipmunk:

OK...so why would anyone trade spot fx over FX futures market?

thx

Only the EUR/USD futures are liquid enough to really day trade properly. The other futures are not so good for day trading compared to the spot. The EUR/USD cash are still more liquid overall than the 6E futures and also have tighter spread 0.5pips most of the time.

 

[traderslair]

Because they don't have enough money.

Forget the quote about the liquidity, I have thrown 20, 40 and 80 contracts a time at the currency futures and hardly seen it move.

 

[hard kore]

Quote from traderslair:

I have thrown 20, 40 and 80 contracts a time at the currency futures and hardly seen it move.

stocktrader .
blotter post on the 80 lot

 

[querry]

Quote from chipmunk:

OK...so why would anyone trade spot fx over FX futures market?

thx

It's can be a lot less expensive to live test ideas in FX than it is in Futures.

 

[actionzip54]

Blotter posted bro

 

[1245]

Quote from actionzip54:

Blotter posted bro

I give you credit for your creativity.

1245

 

[chipmunk]

I do not day trade....... Why on earth would anyone waste their life doing that?

So for end of day futures are best?

Thx
:eek:

 

[1245]

If both markets were both liquid and tight markets, FX futures would be better. The future would be one market with the best Bid/offer rather than a fragmented market were your broker shows you the bid and offers from the banks on his platform with a vig added in. Different FX platforms can have different markets. With futures, the counter party risk would be with the futures exchange rather than your broker. If your broker goes bankrupt,you have no protection with FX.

 

[Traveler]

I'm going to say cash FX is popular due to customizable (small!) position sizing and high leverage compared to CME fx.