Stocks & Commodities V. 28:5 (53): Futures For You by Carley Garner

Stocks & Commodities V. 28:5 (53): Futures For You by Carley Garner
Item# \V28\C05\098GARN.PDF
Availability: In Stock

Product Description

Futures For You by Carley Garner


What are the advantages of trading currency futures as opposed to foreign exchange?

If you recall from the April 2010 column, we discussed the implications of government regulation, dealing desks, and counterparty risk when it comes to deciding between currency speculation in the futures or forex markets. However, there are a few other things to keep in mind, such as the true costs, liquidity, margin, and access to options.

Transaction costs: The forex industry has done a great job at marketing commission-free trading. Accordingly, speculators have flocked to forex brokerage firms that are structured as dealing desks. These firms make money on the fixed-pip spread rather than a transparent commission charge. On the surface, this seems to be an advantage over trading futures, which involve commission and exchange fees. Nevertheless, the typical forex pip spread of three to five pips provides the brokerage firm with a handsome reward and although it isnít obvious, the retail trader is paying sizable transaction costs to participate in such a market.

*Note: $2.95-$5.95 Articles are in PDF format only. No hard copy of the article(s) will be delivered. During checkout, click the "Download Now" button to immediately receive your article(s) purchase. STOCKS & COMMODITIES magazine is delivered via mail. After paying for your subscription at users can view the S&C Digital Edition in the subscriber's section on

Take Control of Your Trading.
Professional Traders' Starter Kit
All these items shown below only $299.99!
  • 5-year subscription to Technical Analysis of STOCKS & COMMODITIES, The Traders' magazine. (Shipping outside the US is extra. Washington state addresses require sales tax based on your locale.)
  • 5 year access to S&C Archive
  • 5 year access to S&C Digital Edition
  • 5-year subscription to Advantage.
  • 5-year subscription to Working Money.
  • Free book selection.
  • Click Here to Order