price movement on forex vs. futures

Messages
702
Likes
14
I was noticing today that the Euro futures contract looks "smoother" than the spot forex price . I'm paper trading with the free data and carting package from CMS-forex. I noticed the same gap in the netdania forex charting also.

I also notice the futures seem less prone to random spikes where the price jumps away 20 pips for one or two ticks and then comes right back and goes on as if nothing happened.

Is it a common occurence for the spot price to gap 30 pips while the futures goes through the same range of motion with a smoother transition? Does this translate into a better chance of a stop order getting filled on the future?

I've included some charts so you can see what I mean. The Euro chart is from www.futuresource.com .
Thanks,
JO
 

Attachments

  • 20040921Euro.gif
    20040921Euro.gif
    11.2 KB · Views: 1,476
  • 20040921Forex.gif
    20040921Forex.gif
    41.6 KB · Views: 3,523
I tried a trial of Futuresource workstation and their forex charts often moved out of range of the real market. I asked repeatedly for the source of their data provider but they never were able to answer me. It is possible to have more gaps in the spot than the futures if a few players sweep the prices but I would be skeptical until I compared the futures to an EBS chart.
 
Top