If the spread stays around 2 pips for M6E and the RT trading costs is approx $1 round turn it becomes a viable FX instrument. Almost the same as a 3 pip bucketshop but with: #1. Regulated Exchange: #2. FIFO Order Book #3. Ability to hedge risk with 6E Options. #4. 5 levels of depth of market data: soon to be 10. #5. Platform agnostic. #6: Globex feeds and data #7: No overnight interest (Not sure) The equivalent 6E contract RT is about $4 this seems to be around $10. 200x margin:: $650 overnight margin... Intraday as little as $65: Your gonna have a plethora of $500 newbie blow-ups that the bucketshops are counter parties to... pocketing all $500... CME's got their act together... I would think the volume can be rolled into the emini equivalent. Just seems like a fractional futures contract. Not a bad idea...
bucketshops will be gone a lot quicker than some people think... once more people become aware of the benefits of a regulated exchange, we will see an exodus of traders coming to these e-micros...be patient
Didn't realize these e-micro's just launched monday. Anticipate they will scale up nicely over the next 30 days. Appears to be the same contract spec as their e-mini counterparts except 10% the size... ie. $125 a point instead of $1250 (6E / M6E). There's your .1 pip. $1 a contract commission and exchange fees seems competitive compared to 2 - 3 pips. I don't think most people playin the spot game realize they are trading against their broker and their tweaked data feed. Pretty obvious conflict of interest.
What is the performance bond/contract on these e-micro fx futures? I assume it's 1/10th of 6E....etc.
Here ya go... http://www.etvmedia.com/etv/BackOffice/Flash/EmbeddedPlayer.jsp?channel=1414&corp=1407&movieid=44715