I'd like to the 6E contract in sizes of 2-3 contracts. Is there any reason why I should use forex to initiate my trades instead? The 6E seems fairly liquid so at first glance it doesn't appear that slippage would be an issue. I'd appreciate any answers on this.
Futures are pretty straight forward, fair order book, that you interact with very simply, directly competing with market participants. Retail Forex is a joke.
If you're only trading a few contracts, definitely trade 6E - the CME is a regulated exchange and that gives you a lot of transparency and avoids any problems with your broker taking the opposite side of your trades and playing games with you.
Thank you for all the info everyone. What would you say is the max number of contracts before I start having to look at trading forex directly? On the ES I usually trade 4 tick scalps and try to catch 2-5 point moves by swinging a few contracts with certain trades. I plan to do so with the 6E once I get comfortable with the contract. I'm surprised that the 6E is not more active. Seems like around 125k contracts a day during the pit trading hours of 7:20AM CST - 2:00PM CST.
If you want the mini CME FX futures it is the /E7 and they just released a micro one that is the /M6E
The /E7 mini is pretty liquid. It just depends on that size you are wanting to trade in these. There is a product for everyone.
Agreed, but only if you have to trade naked positions while relying strictly on directional trades. If you can develop non-directional trades, then you are not naked at any time and no matter what the market does, you will always turn a profit. The only question is, when.
Probably a combination. Non-directional is feasible if your trading 3-4 pairs with varying correlation and creating spreads with binary currency options.. hence "not naked" it's somewhat secured by the option.