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Your votes are much appreciated, and winning again only motivates us more to do even better this year! Thanks again, now on with the official topic! In this pair of charts I have the British Pound vs. Both charts showed a retest of a supply zone which held on both charts, seen where the two red arrows are marked.
So what spot forex trading account this spot forex trading account It is commonly said that the larger market is more important than the smaller one, and since the spot forex market trades more dollar value per day than the futures market more weight spot forex trading account be given to it. This does lead to a bit of a conundrum, however. When the markets do line up, check the red arrows again, I will take the trade. Another thing to note is that these two charts are nearly identical because the British Pound is the base and the US Dollar is the quote.
This is not always the case! This is because in the spot market the USD is the base while the Yen is the quote. When looking at the futures market, basically they are switched; the Yen is the base and the Dollar is the quote. Noticing that the USDJPY had a small supply zone while at the same time the Yen futures chart was in demand could have led you to take a trade on either symbol because they both lined up. This is another type of confirmation for those of you who like that sort of thing.
Obviously with an inverse chart the prices will be wildly different, this is merely an easy math equation. Keeping it simple is my preference! Another interesting difference in spot forex vs. So, futures spot forex trading account be cheaper to trade! As you may know from your previous trading, not every pair has the same value per pip, which is the same in the futures market.
So the big take away here is that different symbols will have different margin requirements, and they will also have different dollar values on the minimum moves pips or ticks. Many traders will choose to open one spot forex trading account to trade one spot forex trading account class, be it spot forex or futures.
If you choose to open a forex account only, you will have access to many different currency pairs to choose from. While these obscure pairs might look good to you on a spot forex chart, trying to trade them in a futures account might be a problem. The main reason is the lack of volume, or even possibly the lack of the pair even trading in the futures market! If you choose to open a spot forex trading account account, you will have access to the major currency pairs, in addition to other contracts like wheat, gold, oil, etc.
But access to all of the currency pairs will be limited. So there you have it traders! A few expanded differences on spot forex vs. Personally, I trade both asset classes as I like the benefits that they both have to offer! As always, please do your own research on your chosen broker to determine what is right for you and your circumstances; even ask your Online Trading Academy Education Counselor for their recommendation. Forex February 16, Spot Forex Vs. Disclaimer This newsletter is written for educational purposes only.
By no means do any of its contents recommend, advocate or urge the buying, selling or holding of any financial instrument whatsoever. Trading and Investing involves high levels of risk. The author expresses spot forex trading account opinions and will not assume any responsibility whatsoever for the actions of the reader.
The author may or may not have positions in Financial Instruments discussed in this newsletter. Future results can be dramatically different from the opinions expressed herein. Past performance does not guarantee future results. Reprints allowed for private reading only, for all else, please obtain permission.