Interest... hedging... the interest wouldn't be your sole rationale for hedging, would it? That doesn't work. No, the funds will not be the same. There's no free lunch here (=risk-free arb). Any carry, or positive interest income, from your position's spot leg will be more than offset by an equal (in theory) but, in fact, a larger (in the real world) continuous convergence to 0 in the basis, or price difference of the spot leg and futures leg. IOW, the currency futures price at any time correctly reflects the IRD (interest rate differential) until expiration, at real (as opposed to retail) rates. Your account value ("the funds") will decrease -- thanks to daily futures MTM (mark to market) -- the faster the more leverage used. Try it on a demo for a few days and see for yourself.
Thanks for explaination. I will put it on demo. Also if possible, can u tell me some other broker which u know who allow trading forex and futures with the same platform who u mentioned lower ur margins if u are hedging against the same market. regards
TT Certainly is for futures and I believe they also access hotspot but have never used Hotspot this way.
ThinkOrSwim Says they will be expanding their futures offerings and Adding Forex to their suite of services this year....
Yea I heard about them too but guess its gona be 2 difrt platforms. I want something with same platform for both forex and futures. Other then IB
Well the futures is integrated into the current TOS platform... And in keeping with their way of doing things, I expect that it will be integrated into the same platform (not hard to do, just add another tab). I hadn't heard otherwise, when they were detailing their future plans to me....
Okay I understand but even in this case that wont solve my problem unless and until they let u trade forex and futures with the same universal account with one funding source rather then opening 2 accounts for the forex and futures even if u are trading with one platform both markets. Or is it what they planning to do as well?
Just giving future info. May benefit someone else on here. Currently TOS let's you trade equities, options and futures from the same account (Something Tradestation hasnt figured out yet.) Part of why I chose IB and TOS over Tradestation when I was comparing the 3. SO I dont forsee them jacking up a good thing and doing that. Now if TOS would only include a matrix/ladder/book trader type feature in the platform.....
So u using IB . U must be knowing then for sure if they let u trade futures and forex with the same universal account?