forex trading

[money123]

hi ppl
i want to start trading currencies but im a bit confused i would appreciate any answers 2 the following questions:

if i want to for example buy USD with GPB hold the USD for a week or so and convert it back to GPB what istrument do use-
spot or forward?

how does it work?

do i get interest?

The cmc manual says something about a spot transaction being due for settlement in 2 business days, coul someone please explain what this means?

any other info any1 thinks i need to know regarding this topic is much appreciated .

thanks

 

[peto]

Simplest solution is open an account with D4F spreadbet and trade rolling cash currencies with around 4 or 5 tick spread and min bet size of £1 per tick; 24 hour availability. They just roll over each night without any problem and you stay everything is calculated in ££.

I also use IB for currency futures. These move in tandem with the cash price and are available for about 23 hours a day (they disappear at 10pm UK time for a bit). The spreads are generaly better although sometimes widen alarmingly at slow periods. I fund my account with ££ and any profit or loss is stored as $$ which can be converted back at a 'reasonable' rate when you feel like it. Your account statements show your balance in terms of ££. Not sure how the interest works but I imagine it would be a very small component compared to your trading profits/losses.

 

[jordan1215]

any questions about rolls I can answer, was a forward dealer for some time. Access to a great desk for forwards and spot.