by Gavin M.
Ever since our summer sale has gone under way, we have gotten about 10 orders. It doesn't sound like a lot but it's a good number. We can't complain. The top question we've gotten this weekend so far is what is the difference between trading Forex and Forex Futures. So let me give it to you quick and clear:
Forex Markets - OTC traded by various broker dealers across the globe. Some are reputable and some not so. It is a deregulated market with no central exchange.
Forex Futures - traded under the CME or some other Futures exchange. It is under an exchange so trades are all supervised and properly recorded.
Cost in the Futures world can be "cheaper". This is a debatable issue because some forex brokers give you 1:100 leverage therefore allowing you to trade Forex with as little as $1,000 in the account. In the futures world, the maximum cost to trade 1 LOT is trading the Euro futures at about $7500 per lot. All others cost you no more than $4,000 per lot.
In the end, it comes down to preference and convenience for the individual trader. If you have absolutely no idea what I was saying on this post, this just means one thing - GO and LEARN!
Traders from Equity Sense will be writing on this blog on positions and other market-related things.