Any reason not to trade 6E over EURUSD?

fx is best for day-to-days/weeks trading regardless of o/n interest since the margin
doesn't increase for o/n position trading, however daytrading margin is considerably
higher than the 6E - $500 to trade $125,000 which with Canada's new 3% margin
requirements means $3750 to trade the same fx amount (not sure it's related but
fxcm just discontinued offering brokerage to Canadians) 6E o/n margin is $3500

if volume's thin on the 6E it's even thinner at brokerages since each fx broker is in a
sense an individual exchange, each an equivalent of the cme globex

6E commission is generally around $4.50 and can be lower, while fx at .8 is $10 for
12.5 minilots, at 2.5 is $31.50 and during news releases 15 or more - $187.5
which means one can be profitable trading 6E with only a single pip/tick gain

'slippage' is a real euphemism; if a trader wants a specific price they should use a
Limit order, market orders are executed at the next current price which might be
the previous price or several pips/ticks away, however fx trades are executed at the
'discretion' of the fx broker or bank/s several pips/ticks away from the price that is
displayed on the quote screen/chart - from fxcm's trading station user guide:

" 2 scenarios can occur when a market order is placed:
1. Market Range: If an order cannot be executed within the price range specified
by the client, the order will not be executed. The default setting for "Market Range"
is zero. By keeping this setting, you are stating that if the price you click on is not
available, you don't want to get filled; you will only get filled at the price range you
click on. Advantage = Price Certainty [in other words if you don't give-up some extra
pips by increasing the 'Market Range' amount you won't get filled]
2. “At Best”: If you select this option, your entire order will be filled at the best
available rate. This could be at the rate you click on, or a substantial number of
pips away. Essentially, your complete order will be quickly filled, but there is no
certainty of the price. The rate is determined by prices provided to FXCM by the
multiple banks and financial institutions. Advantage = Execution Certainty"
["substantial number of pips away" "no certainty of the price" but you will certainly
be executed ]

see fast market conditions represented by a 10 tick chart, how large the h-l range
can be - how fast the price can change: http://www.elitetrader.com/vb/showthread.php?s=&threadid=172655

 

Thanks Wallace. Very useful information there.

I don't like a bunch of leverage so I'm quite happy with futures especially for daytrading.

I would like to trade a non-major pair like Euro/JPY but for now I'm quite busy with the Euro.

 

what kind of volume do we have inforex future products these days?

i hate spot

 

Wallace has broken down all the main points above:
With futures you get lower commission and higher leverage during the bulk of US business hours. The downside is during European morning you are facing overnight margin, which may present inconvenience.

The only things to add:
1) Many brokers offer fractional pip rates now. (1 pip is 1 tick of 6E). Bid/Offer spreads rotinely stay below one pip. You may be able to get a better fill if you make full use of this feature.
2) Offtopic. Liquidity in "cross" futures contracts is non-existant. If one wants to trade, say, EUR/JPY, trading 6E and 6J to obtain a cross rate is feasible only for large trades given the futures have different (and varying) dollar size.

 

hit a new record recently, heres the press release:






News Release Issued: December 07, 2009 11:50 AM ET


CME Group Hits Daily FX Trading Volume Record

CHICAGO, December 7, 2009 – CME Group, the world’s largest and most diverse derivatives marketplace, experienced record trading volumes and notional values for FX products on Friday, December 4, 2009.

Trading volume for FX products reached 1,396,035 contracts with a notional value of $184.9 billion. Euro FX products experienced record volume of 494,444 contracts with a notional value of $91.6 billion.

 

What about idealpro contracts from IB? Comments much appreciated

 

Hey kids, Veyron 16.4 is back as raVar!

https://www.elitetrader.com/et/thre...de-6e-over-eurusd.172952/page-18#post-2549146