Quote:
Originally posted by merlin
forex allows for very low startup captial, but there are no regulations that keeps the market honest. forex also has high commisions. people say forex is commision free, but that is BS. the spread is the commision, and dont forget about "rollover" charges as they can be substantial.
when you trade forex or futures, you are trading the same thing - commodities.
there are several layers to trading commodities >
layer 1: CASH MARKET
layer 2: FUTURES MARKET
layer 3: OPTIONS
the cash market for soybeans is where you actually give a grower money for his crop. the cash market for currencies is Forex. then you have futures (CBOT, CME, etc) layered on top of the cash market. and on top of all that you can buy options on your futures contracts.
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So what you're saying is that for smaller accounts Forex provides more opportunities but is more expensive?
Forget options they're for losers - unless you're selling them that is and that wasn't the topic I had in mind - sorry
Merlin, assuming you had $4,000 for trading what would YOU chose to trade?