Futures For You by Carley Garner
Is there more leverage available in currency futures trading or forex trading?
For those who arenít aware, there are at least two completely separate venues for currency speculation: exchange traded currency futures, and off-exchange forex. Equity market ETFs come in a distant third when it comes to popularity and efficiency. There are certain advantages and disadvantages to each arena. In fact, Iíve touched on that topic in a previous issue, but when it comes to leverage and margin, there isnít a clear-cut winner.
Let me first start by saying that more leverage, which is equivalent to a lower margin requirement, isnít necessarily preferable. In fact, higher leverage is a sure-fire way to decrease the odds of trading success. This is why it is important to be educated on the margin requirements in each venue. Iíll give an overview of each.