trade the E-micro EUR/USD M6E ?

Discussion in 'Forex' started by Wallace, Apr 17, 2012.

  1. thinking this contract might be better than spot fx for Day-to-Days trading

    specs: E-micro EUR/USD M6E CME/Globex 12,500 pip value: 0.0001 / $1.25
    margin: overnight: $270.00 daytrade: $100.00
    AMP rt comm: $1.99

    Oanda margin: 12,500 EUR/USD @ 1.3150 leverage 50:1 = $328.75 margin
    Oanda 'comm': spread @ $1.25 per pip

    need to use Limit orders due to lower volume ?
     
  2. You can use market orders if you want to hit/lift bids or offers
     
  3. last I checked the micro contracts weren't liquid enough to even consider.. especially compared to spot.

    They get a shot in the arm recently?
     
  4. M6E for trading is ok( but a lil risky) if you don't have the money for the larger 6E contract but I would only trade it at its most liquid between 3am- 3pm Eastern(NY Time)

    * I highly suggest keeping a chart or DOM open for the 6E to compare the price difference to the M6E so you can keep an eye on disparities between the two when it comes to the last price quoted
     
  5. I wasn't looking to daytrade the M6E, strictly DtDs trades so I wouldn't be too concerned
    about the fill price. Oanda's the largest fx broker and yes the volume of trades they
    process is higher especially in the quiet times, however I thought I could more easily
    open a second account with AMP for what I wanted to do rather than go to all the
    trouble of funding an Oanda account

    wanted to add AMP's minimum account size is $500 for the free NinjaTrader with the
    CQG feed; see also margins, contract specs etc: http://www.ampfutures.com/

    attached are the 6E and M6E 1min charts side by side and you can see the much lower
    volume of the M6E, and, a much lower quantity of price bars later in the session -
    140 v 116 , and similar price formation but not exact price matching
     
  6. You are aware that the free Ninjatrader platform AMP is offering you is for charting and simulation only. If you want to use Ninja for live trading then you either have to lease it or buy a lifetime license.
     
  7. jo0477

    jo0477

    That's not true. You get the standard version (or whatever It's called) free for live trading. You need the license for the ATM features, chart trader, etc.
     
  8. ddouglas

    ddouglas

    Just watch it live, & you will see everything you need to know.

    Price does not match exactly only because there are no executions, and the chart only records executions. The price at which YOU can buy or sell it, however, (the bid/ask) will always be the same as the 6E. Spread is usually 2-3ticks v. 1 in the 6E ($2.50-3.75, & $12.50 respectively).

    I have seen many people say it lags the 6E. This tells me two things about them:
    1). They have never watched it live, & observed the viability of trading it . .
    and
    2). They don't recognize obviously good strategiy opportunities when they see them. If it really lags, just buy the lag, & sell when it catches-up! (it always does). Easy-lag-money, right?! If you complain about it lagging - just make free money off the lag!

    Unfortunately, it's not possible, because the bid/offer do NOT lag. No market-maker is going to let you take free money because they're leaving stale bids/offers that allow you to capitalize on the lag.

    Which makes it a good, viable downsized 6E alternative.

    Same is true for M6A, & M6B, too.
     
  9. Why don't you want to go with Oanda? Probably one of the best currency brokers for the price.
     
  10. So 2.5 ticks spread on average + 1.75 ticks in commissions + questionable liquidity situation, that doesn't sound attractive to me. You shouldn't really pay much more than 1 pip per roundturn (spread + commission). If you are in the trade for a few days the transaction costs probably wont matter that much, i still dont see why you want to pay more than you have to.
     
    #10     Apr 18, 2012