Forex Futures
You can protect spot forex positions through the buying and selling of forex futures trading. Large banks and hedge funds have been trading forex futures for some time now while retail investors are just beginning to enter the market.
Speculating in the forex futures market although normally requires larger account minimums to trade than spot forex often does offer lower spreads. Although regulated by the NFA they are not traded on a centralized exchange.
Forex Futures Trading
Many traders use pivot points to key off of when trading forex futures intraday. Since many people are all watching the same levels they do become significant barriers of support and resistance similarly the way Fib levels also become important price levels to watch since so many traders are aware of them.
Some advanced traders in the futures markets are using techniques such as arbitrage however the bread and butter forex trading strategies that are used in spot forex are also used including Fib levels, moving average cross offers, technical chart patterns, and Elliott wave theory.
Trading Forex Futures
There are varying opinions to the favor ability of the forex futures trading market and like anything else includes both it’s advantages and disadvantages. Although the profits in the futures market can be significant it makes sense to trade the spot forex market for the average retail investor or trader. Since all contracts are written with a specific termination date if you do not exit your positions or roll them forward to the next month by then you must except delivery. Just something else to worry abut with little to know need in the forex markets. Like any other market it is important to be extremely risk adverse and keep the amount of leverage you are using very manageable at all times or you run the risk of blowing out your account.
Forex Futures Market
