The benefits of exchange of currency futures trading are significant. The difference between the range of two search of the truth of reality as the history of each, their objective viewers, and its importance in modern currency markets, to more specific issues such as transaction costs, the margin requirements, access to liquidity, ease of use and technical and pedagogical support obtained from sources of each service. These differences are described below:
More Volume Improved Liquidity. Daily volume of money in the futures on the CME is now above 2% of the volume seen every day in the Forex market. Incomparable liquidity is one of the many advantages that forex markets move to higher foreign exchange futures. He told the truth, this is old news. Any currency professional can tell you that cash is king Daybreak since the modern currency markets in early 1970. The real news is that the individual forex traders risk profile, which now has the full right to use the opportunities offered by the forex market.
Forex markets offer tighter attempt to offer increases as the currency futures markets. By inverting the future costs to evaluate it for the money, you can easily see that the example USD / CHF above, in turn, the forward price of 0.5894 to 0.5897 results in a price currency from 1.6958 to 1, 6966, 8 cores vs 5-PIP increase available in the forex currency markets.
Forex markets offer higher advantage and lower margin corresponds to those found on the trading of foreign currencies. When trading currency futures, buyers have a margin payment "day" buy and sell, and the other "overnight" situations. These forex margin rates can vary depending on the size of the company. When trading on cash markets, you have access to the same prices for the day and night. Certainly, trading on margin increases as your FX gains and losses.
Forex markets use easily understood and the world of terms and cost quotes. Currency futures quotes are inversions of the cash value. For example, if the spot price for USD / CHF is 1.7100/1.7105 future corresponding is .5894 / .5897, a methodology that the limits of futures trading.
Forward currency positions have the added difficulty of some progress currency that takes into account the time factor, interest rates and the disparity of interest flanked by different currencies. Currency markets do not require changes, handling or mathematical thinking to factor interest rate futures.
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