Hi, just a quick question.
Trading on spot certainly makes sense for day traders and scalpers but if I happen to decide to hold on to my small position(s) a little longer than a day like two or three days and not longer, should I go for the future and pay more spread or accept the rollovers and stick with the spot?
I can only say that holding trade over night is a swing trading. I’ve never heard of anything in between, AFAIK.
Swing trades are generally much longer than “overnight” trades.
Short-term trades that are longer than day-trades, but shorter than swing trades, can be labeled any number of ways. But, the simplest way is just to call them [B]short-term trades.[/B]
Here is one way to divide trading into 5 styles, ranging from scalps that might remain open for just seconds, to position trades that might remain open for years:
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I’m grateful for your thorough break down. Though I was hoping to know what market would be more viable for a short time trader, futures or spots?
My previous post was not directed at you — it was a reply to pbx, who seemed to think that 'overnight" trades are swing trades.
Well, if you were hoping for a definitive, one-size-fits-all answer to your question, I’m sorry to disappoint you — there is no such simple answer. Just as there is no simple answer to the question: Which broker is better? Oanda or FXCM?
So, the best you can hope for is a lively debate between some knowledgeable person advocating Spot FX, and some other knowledgeable person advocating FX Futures. And here is the best debate I’ve seen on this question —
Dueling markets: Forex futures vs. spot forex | Futures Magazine
Note that this article appeared in [I][B]Futures [/B][/I]magazine back in 2011. But, it is still current and accurate, in my opinion. Will it answer your question? No. But, it will give you two opposing viewpoints, from which you can make your own informed decision.
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