How to make a leveraged forex trade on IB TWS?

Discussion in 'Forex' started by helpme_please, Dec 21, 2018.

  1. One question to the elitetraders here who are familiar with IB platform.

    For IB clients who trade equities and forex, wouldn't it be more efficient use of cash to buy forex futures on IB instead of making leveraged fx trades since the latter will use up more available cash, leaving less for equities investment?
     
    #11     Dec 21, 2018
  2. JSOP

    JSOP

    Hmmn...always it's the other way around. Futures always require higher margin than spot.
     
    #12     Dec 22, 2018
  3. alexpun

    alexpun

    it is more efficient with futures as IB rape you with the interest rate (overnight forward points) if you hold the position overnight. (unless you get access to their FX auto swap program which required min 10MM positions)
     
    #13     Dec 22, 2018
    helpme_please likes this.
  4. Thanks. Good point to note about the interest fees charged by forex brokers for the forex leverage. I don't know exactly how much IB charges for the leverage but I would expect futures which are regulated to have reasonable interest charges for the built-in leverage.
     
    #14     Dec 22, 2018
  5. Where can one see what rates they charge overnight?
     
    #15     Jan 31, 2021