Registered: Apr 2012
04-24-12 12:53 AM
Quote from ddouglas:
Just for fun, I took this screenshot from TWS at 2:36pm EST today: Full-size futures on the left, Micros on the right.
Edit: That's the bid/ask - I should have said that.
Spread has become pretty tight for M6E (and also M6A) during regular sessions as more and more people are trading it.
FX futures in general are a bit more expensive to trade than spots. It is especially true for these micro contracts. As someone pointed out, you are looking at 2 pips miminum/RT. So for short term trades, I would stick with spots. But for longer term trades (if you intend to hold your positions for weeks, months or even through expirations), it's a different story. Often what people forget to compare is the overnight rollover rates. With spots, whichever retail shops you are with, there is no way you could get anywhere near what futures offer because there are always arbitrages going on to ensure you get the fair market and hence best rates.
One more advantage to these micro contracts is that they are not susceptible to quote rigging by bucket shops (Onada included). In non-regular hours, you might not see a tight spread, but you can usually still get a fill by giving up a pip or two. Also, all your trades are cleared centrally. For some, this is what makes them sleep better at night.