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DynamicFx

E-micro Currency Futures

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Hello,

 

I've got my new IB account set up.

 

Could someone please confirm I have this correct, with regards to the new E-micro currency futures.

 

The commission is $2.60 for M6E, with a tick value of $1.25. So two ticks will more or less cover the commission. As I'm new to futures, am I correct in thinking that if I trade 2 contracts, the commission is still $2.60.

 

So if IdealPro has a commission of $2.50 plus the spread, lets say 1 pip, with a minimum 25,000 entry, then it's a minimum of $5.00 to trade $2.50 per pip.

 

Therefore, am I correct in thinking that trading two M6E contracts ($2.50 per tick) is actually cheaper than trading spot forex, if I assume that M6E doesn't have a spread.

 

Finally, is anyone using these new E-micros, have you had any problems or are they doing fine.

 

Or have I got this wrong, and is spot forex the better option.

 

Thanks.

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Hello,

 

I've got my new IB account set up.

 

Could someone please confirm I have this correct, with regards to the new E-micro currency futures.

 

The commission is $2.60 for M6E, with a tick value of $1.25. So two ticks will more or less cover the commission. As I'm new to futures, am I correct in thinking that if I trade 2 contracts, the commission is still $2.60.

 

So if IdealPro has a commission of $2.50 plus the spread, lets say 1 pip, with a minimum 25,000 entry, then it's a minimum of $5.00 to trade $2.50 per pip.

 

Therefore, am I correct in thinking that trading two M6E contracts ($2.50 per tick) is actually cheaper than trading spot forex, if I assume that M6E doesn't have a spread.

 

Finally, is anyone using these new E-micros, have you had any problems or are they doing fine.

 

Or have I got this wrong, and is spot forex the better option.

 

Thanks.

 

 

Commissions for futures are normally quoted per contract per side. If you buy a contract, you pay $2.6 commission and when you sell it, you pay $2.6 comission so your roundturn is $5.2. Multiply that with the number of contracts you trade to determine your comissions.

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I never knew that, so thanks. I was sure it said 2.60 roundturn before, but it's actually 2.70 (1.35 per contract).

 

So 2.70 per contract would actually be a little more expensive than spot forex for 2.50 per tick, but I suppose you'd have the futures benefits.

 

I'll perform some paper trades next week, and see how things work out.

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How liquid are these markets gents? I'm interested in trading a smaller lot size than a normal futures size (for position sizing, etc) but I don't want to go back to the spot market because I typically enter the market on buy/sell stops. Much easier to do this with a DOM in the futures market and a constant spread.

 

Are they tradeable and smooth or illiquid like some of the other new "emini" contracts (mini gold, silver, etc).

 

I can't pull up their data in my feed yet or i'd check it out myself!!!

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daedalus said- Re: E-micro Currency Futures

"How liquid are these markets gents? I'm interested in trading a smaller lot size than a normal futures size (for position sizing, etc) but I don't want to go back to the spot market because I typically enter the market on buy/sell stops. Much easier to do this with a DOM in the futures market and a constant spread."

 

I am pretty sure that you can use the DOM on Ninja trader with a few brokers for spot forex, and it is a nice one with preset phases for order and exit available. I know MB Trading works with NT, but I am not 100% sure that the Forex is included in that connection. Also they do not have backfill data.I also know JR Futures has forex and data backfill for NT, but we had real troubles with them interfacing and crashing with NT last year. NT offers many broker connections. NT can be a little shaky because it requires the .net framework for windows to run. We found that it ran best on XP with only .net 2.0 plus the patch , no higher versions. Also due to the liquidity of most FX pairs I use market orders with MB trading and have good fills.

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I just want to echo what EJ posted above. You can of course use a DOM with a general purpose broker like IB to trade FOREX. I do this all the time using zerolinetrader. Makes it a ton easier!

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The micros are not anywhere near as liquid as their mini-future counterparts.

 

Does it matter?

 

The reason I ask is because I trade oil. CL and QM. CL has very good daily volume while QM has almost none, but it doesn't matter because QM just mimics CL. The price trades lock in step just with 1/2 the value. The reason I sometimes trade QM is because I can double my stop while keeping the risk the same. A 10¢ stop on CL = a 20¢ stop on QM both are approximately $100.

Edited by enochbenjamin

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I imagine if you kept your position size down, they would be tradeable. But I have never tried to enter in a market with poor liquidity and imagine you would get some bad fills. Anyone with some extra money want to test these things haha?

 

EDIT: Wow the volume on these things is really low..

Edited by ziebarf

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my only concern is that the CL/QM comparison isn't exactly apples to apples... the QM will still clear 12-15k contracts per day... the M6e (the most active of all the pairs) traded 2,400 contracts...

 

and i've found a lot of these kind of answers...

 

Volume very low, E7- no fill on stop limit order (maybe limit to small), M6E- minimum gain of 5 ticks to cover commissions. Found it not tradable.

 

Frankly... i want to trade liquid markets and these just aren't yet.

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What is the tick value on the "micros"? The tick value on the 6B is $6.25. I'd not really want it smaller than that ... after all, my costs for trading the 6B are 2x's my costs for 6E, 6J, and ES when trading comparable size.

 

Best Wishes,

 

Thales

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