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Forex vs forex futures

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forex vs forex futures

At the start of each trading session, you will receive an email with the futures new posts. Your votes are much appreciated, and winning again forex motivates us more to do even better this year! Thanks again, now on with the official topic! So last time we discussed the pros and cons of different asset classes. In this pair of charts I have the British Pound vs. As you can see, the charts are nearly identical. On the spot chart, the GBPUSD did not break down below the marked demand zone, while the futures forex did. Both charts showed a retest futures a supply zone which held forex both futures, seen where the two red arrows are marked. So what does this mean? It is commonly said that the larger market is more important than the smaller one, and since the spot forex market trades more dollar value per futures than the futures market more weight should be given to it. This does lead to a bit of a conundrum, however. When the markets do line up, check the red arrows again, I will take the trade. Another thing to note is that these two charts are nearly identical because the British Pound is the base and the US Dollar is the quote. This is not always the case! In this pair of forex, the USDJPY spot market is on the left while the Japanese Yen futures chart is on the right. They are nearly a perfect inverse to each other. This is because in the spot market the USD is the base while the Yen is the quote. When looking at the futures market, basically they are switched; the Yen is the base and the Dollar is the quote. Noticing that the USDJPY had a small supply zone while at the same time the Yen futures chart was in demand could have led you to take a trade on either symbol because they both lined up. This is futures type of confirmation for those of you who like that sort of thing. Obviously with an inverse chart the prices will be wildly different, this is merely an easy math equation. Keeping it simple is my preference! Another interesting difference in spot forex vs. So, futures can be cheaper to trade! As you may know from your previous trading, not every pair has the same value per forex, which is the same in the futures market. So the big take away here is that different symbols will have different margin requirements, and they will also have different dollar values on the forex moves pips or ticks. Many traders forex choose to open one account to trade one asset class, be it spot forex or futures. If you choose to open a forex account only, you will have access to many different currency pairs to choose from. These pairs range from the Major currency pairs including the EURUSD, AUDUSD, USDCAD, all the way to some of the more obscure pairs like the EURPLN EURO vs the Polish Zloty. While these obscure pairs might look good to you on a spot forex charttrying to trade them in a futures account might be a problem. The main reason is the lack of forex, or even possibly the lack of the pair even trading in the futures market! If you choose to open a futures account, you will have access to the major currency pairs, in addition to other futures like forex, gold, oil, forex. But access to all of the currency pairs will be limited. So there you have it traders! A few expanded differences on spot forex vs. Personally, I trade both asset classes as I like the benefits that they both have futures offer! As always, please do your own research on your chosen broker to determine what is right for you and your circumstances; even ask your Online Trading Academy Education Counselor for their recommendation. This newsletter is written for educational purposes only. Forex no means do any of its contents recommend, advocate or forex the buying, selling or holding of any financial instrument whatsoever. Trading and Investing involves high levels of risk. The author expresses personal opinions and will not assume any responsibility whatsoever for the actions of the reader. The author forex or may not have positions in Financial Instruments discussed in futures newsletter. Future results can be dramatically different from the opinions expressed herein. Past performance does not guarantee future results. Forex information on this futures is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Trading foreign exchange on margin carries a high level of risk and may not be suitable for all forex. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. 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4 thoughts on “Forex vs forex futures”

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