Hedge Fx Futures against Spot Position

Discussion in 'Forex' started by yiftafr, Oct 7, 2006.

  1. yiftafr


    I'm trading Oanda for FX and addicted to the position free size stuff. No more lots and mini lots. It allows me to stick to my money management (1% max risk per position) without skipping trades.
    As I trade futures as well (Tradestation) it happens that even the e mini contracts are too large for certain position.
    Is it practical to use spot pairs to shrink futures contract size. For example trade Euro Fx long (6.25 pip) and go short (EURUSD) 20,000 .
    Correct me if I'm wrong but this way you can also use futures for position trading with less interest payment(if you're in the "wrong" side of the carry).

    What say you?
  2. I will correct you there. ... you have to take the futures contango/backwardation into consideration ... and that will add up to precisely the interest credit/debit of the spot.