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sprooz

Trading Eur Usd with a 30k IB Account

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Hi traders, just a very quick question here:

 

I would like to trade the euro dollar with my interactive brokers 30,000$ account, which symbol/contract would enable me to trade this with the best return on investment?

 

Thanks a lot for helping a newbie :)

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Best return on investment? Well... if your new to trading, and haven't traded with consistent profitability yet... I'd say the best return on your investment would be a money market account.

 

If you want to know the highest leveraged product, it's probably the 6E contract (EUR/USD futures contract). It trades at $12.50 per tick (100 ticks in a cent. Also commonly referred to as pips. A pip and a tick is basically the same thing).

 

I trade this contract myself 3-5 days a week.

 

But be forewarned.... unless you've had a good deal of experience and success trading already, your much better off opening a spot forex account with a broker like Oanda for $100 or $300, and trading the EUR/USD using oanda as your broker, because you can set your risk to any amount you want. For example, you can deposit $100... and on a 1 penny move (which is 100 pips.) you can set it so you only risk $0.02 per pip.

 

Of course, you could set it to risk more, but it's a good way to start out.

 

If you don't have a history of successful trading, and you insist on trading the 6E futures contract at $12.50 per tick... well, pretty much everyone has made the same mistake. And for the few of us still around to talk about it... we appreciate your contribution to our business.

 

;)

 

FTX

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Hi traders, just a very quick question here:

 

I would like to trade the euro dollar with my interactive brokers 30,000$ account, which symbol/contract would enable me to trade this with the best return on investment?

 

Thanks a lot for helping a newbie :)

 

Unless you're swing trading, avoid the 'micro' (as opposed to 'mini') currency futures - they're not liquid enough to daytrade.

 

BlueHorseshoe

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Hi traders, just a very quick question here:

 

I would like to trade the euro dollar with my interactive brokers 30,000$ account, which symbol/contract would enable me to trade this with the best return on investment?

 

Thanks a lot for helping a newbie :)

 

Seriously? Oh man, if I could go back to the beginning of this journey with the knowledge I have now, it would be soooo much easier. Dude, with respect, if you are asking this question, then you should trade the smallest lowest risk symbol . And put a limit on how much you are willing to lose before you find your method. Trade 1 mini lot if you insist on trading currencies. And get used to being up at weird hours.

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Every one wants to trade the 6E. Man if I could just get onto that 500 tick move and hold on with 10 contracts I would take every one I in this thread out for dinner. Their choice. That is what every one is trying to do over there. That is why its so thin. ;D

 

You want R.O.I. go some where else. Go buy some land on the outskirts of a developing town in North Dakota. Understand the 6E isn't a 401 or IRA and that you could lose all of it in a week or a day. Hopefully you wont and you are more cautious and responsible but it can happen. Its not likely you will lose ALL of your money on land in North Dakota. Futures trading is a zero some game and arguably less then a zero sum game because of the fees and commissions.

 

There is no absolute positive expectancy in the 6E. You can get good at futures trading and make 6 figures and be done by noon New York time. But how to do that isn't the question you asked.

 

Hope this helps

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You don't need that much to trade. You may need that much to start off with. IB is only going to require you to have 5000 to trade 1 contract and they are going to charge you a commission for them to put up the rest. When and if you get really good at this you wont need more then 15-20 K in your account.

 

Side note:

I am not sure why you want to trade the 6E. Personally if I was starting over with 30K in my account I would steer clear COMPLETELY from the currencies. I would go straight to the 10 year notes and 30 year bonds with the ES. And I would try to strictly trade the treasuries. Its not sexy by any means. In no way shape or form is it big swinging @#$% trading. It is far more predictable and stable.

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Hi traders, just a very quick question here:

 

I would like to trade the euro dollar with my interactive brokers 30,000$ account, which symbol/contract would enable me to trade this with the best return on investment?

 

Thanks a lot for helping a newbie :)

 

hi Sprooz

if you are new to trading, best advice would be: "do not trade with real money until you learn how to be a successful trader".

probabilty if being successful without any knowledge is almost the same as winning a lottery..but of course lottery tickets are cheaper...

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Thanks a lot for all your answers guys, Sorry for the stupid question: I forgot about this exotic thing called "margin" :)

I actually start to get good on my paper trading account, so I consider seriously going live in a month or 2...

 

What do you guys consider the best techniques to trade the ES and the euro?

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Thanks a lot for all your answers guys, Sorry for the stupid question: I forgot about this exotic thing called "margin" :)

I actually start to get good on my paper trading account, so I consider seriously going live in a month or 2...

 

What do you guys consider the best techniques to trade the ES and the euro?

 

IMO, that's like asking a mechanic what the best tool is to fix a BMW and a Volvo.

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...

I actually start to get good on my paper trading account, so I consider seriously going live in a month or 2...

 

Trade long enough to see different market conditions, so you won't panic and make things worse :roll eyes:

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The Euro Area Economic Confidence declined more than forecast in April. There seems to be a lot of negative news affecting the EUR and the USD with the US economy actually expanding 2.5%, but missing estimates.

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EU unemployment rate has risen to a record 12.1% due to the recession. Moreover, the Euro zone inflation has is now at 1.2% and this has put additional pressure on the ECB for a rate cut.

 

As for the US economy, the S&P/Case-Shiller Home Prices increased 9.3% in comparison to last year.

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