Thanks Steve for the info - all new to me so Ill have to read up on things a bit. As far as the new TWS platform. Checked it out; looks better - I need to find a way to update my currect TWS to that so I can keep my layout. SethArb, I'm still not sure about trading gold at nite .4-.6 spreads dont seem that fun. I've gotten burned a few times with that so I'm a little gun shy. DT, thanks for the info
In theory, yes. In practice, there is no difference at all, if one is profitable for the year. With a simple, internal election (out of IRC Section 988 into IRC Section 1256), your cash forex gains are subject to favorable 60% long-term / 40% short-term tax treatment, like futures. Unlike futures (which are always treated as Section 1256 contracts, by definition), one is not forced to make that election, should there be a loss for the year. From a tax perspective, cash forex gives you choice, and thus the best of both worlds. http://www.greencompany.com/EducationCenter/GTTRecCurrency.shtml#futuresmag Of course, both my comments and that article apply only to US taxpayers.
welcome to forex, Djxput! good luck with all your trading. I may be able to help out a little with your second question. here is a good calculator to figure out how much money you are putting up when you trade forex. you can also adjust it to different leverage (margin) amounts. example: In the cash (or, "spot") forex market you can trade 5894-units of CAD/JPY for $100 at 50:1 margin. best regards, Coinz