Hi Everyone,
Please excuse my alarming amount of ignorance on this subject, but I have to ask. I'm a futures trader. I trade The Euro, the Pound, bonds, gold, oil, and others. I was taught by extremely skilled futures pit traders who hated regular Forex because they said it has no Volume, as there is no exchange, IE, the CME (Chicago Mercantile Exchange)--thus no reading of Volume can be prescribed (although I've seen charts with apparent volume indicators). My questions are vast: #1 What is the difference (if any) between a lot or a single contract in futures, and a pip in Forex? Example: for the Euro, it's $12.50 per tick for 1 contract. What would be an example of this in Forex for 1 pip? I know about the whole idea of leverage somewhat, but I'm not clear at all as to how it works. I know you an open an account for substantially less, but could someone please explain to me the difference between trading a 4 lot on futures currencies and a 4 lot on FX? Do you get to decided how much $ you can ascribe to each pip because of leverage, or is that even correct? What about Bonds, gold, oil, etc. Is this considered 'spot' FX trading? I've read all over about this, but due to my rabid indoctrination of futures. i've never even considered the aforementioned. An explanation of these topics would be extremely grateful. I live in the U.S., as I know that leveraging is different here than the UK, I really just need this understood properly. Thank you all in advance. God Bless.
Please excuse my alarming amount of ignorance on this subject, but I have to ask. I'm a futures trader. I trade The Euro, the Pound, bonds, gold, oil, and others. I was taught by extremely skilled futures pit traders who hated regular Forex because they said it has no Volume, as there is no exchange, IE, the CME (Chicago Mercantile Exchange)--thus no reading of Volume can be prescribed (although I've seen charts with apparent volume indicators). My questions are vast: #1 What is the difference (if any) between a lot or a single contract in futures, and a pip in Forex? Example: for the Euro, it's $12.50 per tick for 1 contract. What would be an example of this in Forex for 1 pip? I know about the whole idea of leverage somewhat, but I'm not clear at all as to how it works. I know you an open an account for substantially less, but could someone please explain to me the difference between trading a 4 lot on futures currencies and a 4 lot on FX? Do you get to decided how much $ you can ascribe to each pip because of leverage, or is that even correct? What about Bonds, gold, oil, etc. Is this considered 'spot' FX trading? I've read all over about this, but due to my rabid indoctrination of futures. i've never even considered the aforementioned. An explanation of these topics would be extremely grateful. I live in the U.S., as I know that leveraging is different here than the UK, I really just need this understood properly. Thank you all in advance. God Bless.
