Forex trading or Futures ?

[moyes]

As a noob to futures trading, could someone who trades futures please tell me what the major difference is compared to the currency market? From what I gathered the futures market is a lot more regulated and seems to be a lot more reputable compared to the forex market where bucket shops are quite prevalent. Thanks.

 

[wino59]

As a noob to futures trading, could someone who trades futures please tell me what the major difference is compared to the currency market? From what I gathered the futures market is a lot more regulated and seems to be a lot more reputable compared to the forex market where bucket shops are quite prevalent. Thanks.

I trade futures pretty much exclusively now. I do think you answered your own question are on the right track, but you asked for major differences.

The major difference is probably the margin requirement, varies by futures product. So you have to put up a lot more margin for one contract.

I mostly day trade so my margin requirement is $500 per contract, however if wanted to hold that position overnight the margin requirement would be $3850 for one contract... depending on your broker they may require the $3850 even if you are day trading.

So I would say the that is one of the biggest differences.

Also I think the real time market data on Futures, is more accurate.

I am not busting Forex, but it is not for me, some guys like wackypete makes money at it, it is just not my trading style, which is something else you have to consider when choosing which market to trade.