what is the difference between forex and futures commodity spread which has greater margin?

Answer 1

Forex Ofcourse.


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Answer 2

Your question is unclear: Are you asking about the difference between spreads in forex and in futures? Are you asking which has the greater margin requirements?

Mechanically, spreads work the same whether in forex or in futures. The only difference is how you'll calculate your profit -- in pips (forex) or in ticks (futures). Spreads are designed to take advantage of the relationship between different contract months, different markets, or different prices. For example, you may place a calendar spread that allows you to take advantage of the higher price of March Corn and the lower price of May Corn, or a spread that allows you to take advantage of the relationship between the US Dollar and 30-year Bonds. Other spreads allow you to take advantage of varying prices for a particular contract in the same month by buying and selling at different prices. In each case, the narrowing or widening of prices differences will determine your profit or loss.

Margin will vary from exchange to exchange, and will depend on your status as a hedger or speculator. The positions you put on will also control what margins are required, since spread positions can create hedges for yourself, in which case your margin might be reduced. To find out the margin requirements for futures, options and forex, it's best to visit the website of the exchange on which your contract trades, or contact your FCM or broker.