E-micro Forex Futures on the CME?

[alwaysLearning]

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?

 

[>Apocalypto<]

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?

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

 

[Timmy]

Any ideas on the sorts of volumes trading on these?

 

[alwaysLearning]

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.

 

[alwaysLearning]

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

 

[wayneL]

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

 

[Timmy]

The micro Euro - 1,220.

Micro GBP - 47 lol

Micro Yen - 418

Thanks AL & Wayne.

 

[alwaysLearning]

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

The micro Euro - 1,220.

Micro GBP - 47 lol

Micro Yen - 418

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?

 

[SoBadAtTrading]

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

 

[wayneL]

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

 

[>Apocalypto<]

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

The micro Euro - 1,220.

Micro GBP - 47 lol

Micro Yen - 418

OMG

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

 

[alwaysLearning]

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

 

[wayneL]

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

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.

 

[alwaysLearning]

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.

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#

 

[wayneL]

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.

 

[alwaysLearning]

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)