what is the real difference between forex spot and forex future.?

Thursday, December 12, 2013 , Posted by Ryanita at 10:00 AM

forex vs futures
 on Japanese yen p o sitions were the only currency bets against the US ...
forex vs futures image




ALEXANDER


besides that futures are centralized ecns at chicago and spot is none centralized.
and besides the time difference of operations.
please don't explain how its derived from the forward price etc..



Answer
There's just a difference in the premium, like in S&P futures vs index.

I've gotten better fills in the futures, especially when trading the reports, because futures are regulated by somebody and they can't rape you as easily, I suppose.

Liquidity is excellent in the futures, just can't get that insane 100:1 leverage.

what's the difference between FOREX and futures?




Adrian C





Answer
In forex, you are not contracting for something in the future. You are exchanging now.

This means that you have to put up the money right now and you are responsible for the interest differential. The really cool part is that with forex, you only have a spread and no additional commissions. You can also do any currency pair that your dealer supports, whereas in currency futures, you are dealing with some currency vs. the currency of the exchange (usually USD) so if you want to do GBP vs CHF you have to pay commission on two deals, going long on one and short on the other (to net out the USD).




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