What's the Better Currency Trade:
Forex Futures or Spot FX?
Learning Markets, February 24, 2009
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There are a lot of marketing materials out there explaining why the spot market is so much better and cheaper than the currency futures market, but how much of it is fact and how much is hype?
What are the real differences between these two closely related markets? Is it really cheaper to trade spot forex? Aren’t there also advantages to trading futures? This is an important topic because so many of the differences are related to trading costs, which is often a neglected subject among new and experienced traders.
Let’s begin by analyzing the major attributes of each market -- futures and spot. Doing so will help us determine if either market really has an advantage.
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