# E-micro Forex Futures on the CME?



## alwaysLearning (21 July 2009)

I just wondering if anyone has traded this futures contract before and what they think of the product in general 

http://www.cmegroup.com/trading/fx/fx/forex-e-micros.html

It seems like a good idea 

Would you guys consider trading this instead of the good ol bucket shop brokers?


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## >Apocalypto< (21 July 2009)

alwaysLearning said:


> I just wondering if anyone has traded this futures contract before and what they think of the product in general
> 
> http://www.cmegroup.com/trading/fx/fx/forex-e-micros.html
> 
> ...




i am out of the bucket shops always, now live with Interactive brokers. best thing i have ever done.


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## Timmy (22 July 2009)

Any ideas on the sorts of volumes trading on these?


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## alwaysLearning (22 July 2009)

Timmy said:


> Any ideas on the sorts of volumes trading on these?




Don't know the exact number but it is quite a lot because these micro futures are pooled together with the standard size forex futures. So, in other words...the same amount of volume as currency futures in general.


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## alwaysLearning (22 July 2009)

>Apocalypto< said:


> i am out of the bucket shops always, now live with Interactive brokers. best thing i have ever done.




yeah, IB is eventually where I want to get to


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## wayneL (22 July 2009)

Timmy said:


> Any ideas on the sorts of volumes trading on these?




The normal size Euro Sept contract has traded ~200,000 contracts today.

The micro Euro - 1,220. 

Micro GBP - 47 lol

Micro Yen - 418


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## Timmy (22 July 2009)

wayneL said:


> The micro Euro - 1,220.
> 
> Micro GBP - 47 lol
> 
> Micro Yen - 418




Thanks AL & Wayne.


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## alwaysLearning (22 July 2009)

wayneL said:


> The normal size Euro Sept contract has traded ~200,000 contracts today.
> 
> The micro Euro - 1,220.
> 
> ...




Yeah but it doesn't matter if the number of micro contracts is low because the full size contract and micro contract belong in the same pool of liquidity.

Do you know what I mean?


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## SoBadAtTrading (22 July 2009)

The spreads on these contracts can be very big during illiquid times. (i.e., australian trading hours).


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## wayneL (22 July 2009)

alwaysLearning said:


> Yeah but it doesn't matter if the number of micro contracts is low because the full size contract and micro contract belong in the same pool of liquidity.
> 
> Do you know what I mean?




Yes, but illiquidity, viz, contest risk via wide spreads and relatively higher commish can hurt. Particularly in fast markets.

Ref YG vs GC, minigrains etc etc.

They're OK for long term punts, but if you're into shorter term trading... avoid. Better off using a bucket shop with small position sizes.

IMO


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## >Apocalypto< (22 July 2009)

wayneL said:


> The normal size Euro Sept contract has traded ~200,000 contracts today.
> 
> The micro Euro - 1,220.
> 
> ...




OMG

Thin as, best wait till the word gets out fellas.


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## alwaysLearning (22 July 2009)

SoBadAtTrading said:


> The spreads on these contracts can be very big during illiquid times. (i.e., australian trading hours).




My understanding is that the micro contract would have the same spread as the normal standard size contract, despite the fact that the number of contracts traded is very low.

The micro contract is not traded in isolation.

Unless I'm missing something big here, I still am a little unsure of the issue with trading this contract?

I can link to a video that explains a bit more clearly how the new micro futures contract works if you guys want to see. There is an interview with the guy in charge of CME group.

Check this video link out if you are interested in how this works.
http://www.etvmedia.com/etv/BackOffice/Flash/EmbeddedPlayer.jsp?channel=1414&corp=1407&movieid=44715


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## wayneL (23 July 2009)

alwaysLearning said:


> My understanding is that the micro contract would have the same spread as the normal standard size contract, despite the fact that the number of contracts traded is very low.
> 
> The micro contract is not traded in isolation.
> 
> ...




OK I just took a screenshot of both contracts a minute ago @ 10:50 AM Chicago time(click to enlarge):




The spread on the big contract is 91-92

On the micro contract the spread is 90-94

That's one point spread versus four points. Commish in and out is another point or so. That is a critical impost when short term trading.


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## alwaysLearning (23 July 2009)

wayneL said:


> OK I just took a screenshot of both contracts a minute ago @ 10:50 AM Chicago time(click to enlarge):
> 
> 
> 
> ...




That is a difference..very true. Interesting, I thought they'd be the same.

WayneL, can you check this URL below and see if the quotes are the same as with your Broker?

http://equivalentswdc.cme.com:443/index.html#


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## wayneL (23 July 2009)

alwaysLearning said:


> That is a difference..very true. Interesting, I thought they'd be the same.
> 
> WayneL, can you check this URL below and see if the quotes are the same as with your Broker?
> 
> http://equivalentswdc.cme.com:443/index.html#




Yep, same story there. 3-4 ticks on the micro, one tick on the standard.


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## alwaysLearning (23 July 2009)

wayneL said:


> Yep, same story there. 3-4 ticks on the micro, one tick on the standard.




Thanks for checking that out WayneL--much appreciated 

I think I'll stick with the bucket shops for awhile longer until the spreads get to about 1pip or so on those micro forex futures contracts. 

Ohh well, it was worth the look and is promising for the future but the spread of 4pips is just too much for something like the EUR/USD. (i'm used to 0.9 spread with my bucket shop broker)


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