had a look at the M6E last night, it looks like market orders would repeatedly get hit with 'slippage' because of the low volume, 24 hour under 6,000 contracts traded, and think the E-Mini Euro FX - E7 has a similar volume Micro Euro FX - M6E - $12,500 Contract - $1.25 per pip - Daytrade Margin $100 - roundturn commission - $1.99 not a bad bang for the buck and the commission is the equivalent of 2 pips
yep, traded it...good to practice on and enough volume. Also have traded mini Corn...both are good to practice on and hold overnight
hi increasenow, were you entering with market orders or limit/etc orders ? did you get what you'd consider 'slippage' on any fills - entries or closes ? am using a CQG demo but should have a live next week and will be interested in seeing how the mini and micro perform during the NFP release
Solely market orders...slippage really is not an issue as you just need it to go in the direction you want. It's been fine for me
that's good to know here's a comparison of the M6E with the 6E, minute charts from Thursday's session
but don't you have to pay spread + commis? your in hole $4.50 right from the entry before the thing even moves, or about 4 pips? how is that good?
ah ya...try trading the large Euro future...if it slips 1-2 you are $12.50 to $25.00 in the hole...the deal is, if you are going for a 20-100 point target, who cars about slippage...
killthesunshine: there's several differences between futures contracts and trading versus fx trading first, futures contracts are traded on an exchange, both in a pit - open outcry as well more recently, 'electronic' trading as it's known, in this case the CME Globex market 'future contracts' is a financial device that's been used for centuries, but retail forex trading is only a decade or so old, a child of the pc and internet, although foreign exchange trading has of course also existed for centuries a futures contract is for a standardized amount and quality, while with many fx brokers any amount can be specified in the 'lot' CME's introduction of the M6E - $12,500 Contract and E7 - $62,500 Contract is a response to the huge retail fx market they are losing out to, they'd like some of that business and created the smaller than the 6E etc $125,000 contracts, which has lowered the account margin minimum with AMP Futures for instance from $2,000 to $500 , with daytrading margins for the M6E at $100 and the E7 $250, this makes them considerably more affordable than the $344 and $1,719 daytrading margin required to trade those contract amounts with an fx broker when trading a futures contract o/n - overnight, the daytrading margin increases: 6E from $500 to $4,320 - E7 from $250 to $2,160 - M6E from $100 to $432 when a futures contract is traded, a commission is charged per contract traded and charged to the account when the trade is closed, for the M6E the round turn comm- ission via AMP is $1.99 , there is No additional spread charge however, in addition to the single commission fee which is determined by the broker alone - not regulated, that fee is fixed, unlike the fx spread fee/commission which is variable for instance Oanda's minimum spread on the eurusd is 0.9 pips or $1.125 for the $12,500 contract/lot size, but, Oanda and all other fx brokers' spread can and does widen, for Oanda this means it can go to 10 pips and I've seen it at 20 pips, and while the Oanda spread can change throughout the trading day, the spreads in not constanty fluctuating - widening and narrowing as it does at most other brokers also there's the matter of 'news/economic reports/releases' when the spread on fx trades is guaranteed to widen, that doesn't happen when trading futures contracts the commission is fixed, it does not widen E7 $62,000 contract rt commission via AMP is $3.37 , Oanda spread fee is $5.625 6E $125,000 contract rt via AMP is $4.87 , Oanda $11.25 or, $112.50 or, $225.00 - when the spread widens to 10 pips or 20 pips there is tho one matter where fx trading wins out against futures trading and that's 'overloss' overloss is a situation when trading futures that an open losing trade that is not closed can result in losing more money than is in the trading account, continuing to increase until the trade is closed, the additional money lost is owed to the broker fx brokers prevent overloss occurring by closing a losing trade, either when the loss becomes greater than the margin required for the trade, or, when the loss reduces the trading account balance to $0.00
So can you do both buy stop and sell stop 15pips apart limit orders straddle on eur or Gbp currency futures with 50pips target both sides 30sec before NFP? Any widening, slippage or orders not filled issue?