CME e-micro futures

Quote from Pippi436:

There are already e-mini FX futures (1/2 size of the standard contracts) on the CME - with crap liquidity and spreads, basically untradeable. I see no reason why the micro-edition should fare any better.
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Is 6E (for example) the full-size or mini-size contract? It trades at 12.50 per tick and volume is comparable to NQ.

I don't know why you'd want to go much smaller than that... commissions would eat you up, liquidity could be a problem and it would split volume with the larger FX contracts.

Smaller tick size is better to a point, but you need to get the right combo... Aside from liquidity, the $12.50 tick size is the major reason to trade ES versus YM or NQ.
 
6e is the full size contract and while margins are lower relative to index futures the risk/reward is huge. Just look at what would have happened had you not been on the right side of the trade yesterday and no stop. 5 handle move x 1250 per contract. But there is big money to be made if you can work it. The E7 is the mini (not micro) euro contract. While its liquidity isn't great you can trade it for larger moves while only risking half of what you do with the big contract. I prefer options on the 6E.
 
No 6E is the full-size contract and then there is a half-size contract for euro and yen, but they don't trade much.

If Velocity commissions at ~$2 will be the norm, the micros won't be attractive anyways, even if they will be liquid. That would effectively add 3-4 pips per roundturn to the spread (compares to ~0.5 pips in commissions for the full-size contract).
 
I trade ES minis(3-5 cars/trade) for 3 yrs now. Tested FX minis for a few weeks(shitty liquidity!. Pros( big boys in investment banks and smaller firms in Chicago, NY, and elsewhere have no reason to get into or switch to smaller contracts bcuz of the shear amt of volume in relation to capital they trade....hence it forms a problem of liquidity for the new smaller contract size. Whos going to be the major mover(s) in this new contract size?.....the very small investor/ and or day trader?...most of whom have no real experience in measuring and/or reacting to market psychology. Thats like getting into a Nascar race with a a high % of amateur and still learning semi pros trying to lead the pack! Chaotic! NO THANKS...
 
Quote from joemiami:

Whos going to be the major mover(s) in this new contract size?.....the very small investor/ and or day trader?...most of whom have no real experience in measuring and/or reacting to market psychology. Thats like getting into a Nascar race with a a high % of amateur and still learning semi pros trying to lead the pack! Chaotic! NO THANKS...
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It can't be that chaotic because it will be so easy to arb it with the larger contracts. Get a fast computer right next to the exchange and you could even be a do-it-yourself market-maker. Doesn't mean liquidity has to be there, though.

What I don't get is the point of having _three_ contracts on the same underlying that are just multiples of one another, especially when the existing 'mini' contracts can't even attract any volume. There were a whopping 2,000 cars traded on E7 yesterday, 1% the volume of 6E. I bet all those trades were guys arbing it to 6E and playing "my MM algo is bigger than yours." Maybe a few cars are from miskeyed orders or noobs making a wrong turn.

It must cost them literally nothing to set up, but they figure the extra fees from whatever residual volume they get will cover the cost of paper cups for the breakroom...
 
I trade the ES as well as the 6E and 6J, and I agree with most here. The half size contracts don’t have any volume, why would a one tenth size attract volume? You have to be careful with the currency futures though. The CME margin is definitely too low for the risk you take.
 
This really couldn't have come at a worse time for the bucketshops IMHO.

With the economic conditions being the way they've been...many FX bucketshops resorted to extremely shady tactics. Even Oanda, which was generally regarded as the least likely to do so.

Magical platform freezes during trades, unexplained downtime, enormous spikes for no reason other than obvious stop running, insane slippage, ridiculous spread widening, etc have a lot of spot FX traders pissed off.

Now that spot FX traders have an option to trade a regulated instrument I think damn near everyone will eventually go that route...as long as there is enough initial volume to get them headed over there in the first place...the transition will become a virtuous cycle to the FX micro futs.

No more worrying about a bucketshop located in the Isle of Man shutting down shop and running off with your money (aside from the total banking we've had of course..lol).

I think there will always be manipulation to a degree...but at least no more brokers running stops and giving different quotes to different people. You will have solid legal options if you get screwed by a broker in the FX micros.


This is some exciting shit.


Hell, I haven't even traded for almost a month...two weeks Belize and Guatemala and the rest of the time has been spent being a degenerate gambler. The market has just been too fucking crazy for me...not just that but the aforementioned broker antics we've been seeing have been just too damn much (for yet another example, refer to Ivan's recent post about Oanda) so I decided to stand aside til the smoke clears...

I really didn't want to take TOO LONG of an extended break from trading, so this is great news for me! Although I must admit I enjoy sitting around on my ass doing nothing. It's addictive for sure.



Fuck bucketshops! Time to pay the piper motherfuckers!
 
Quote from moarla:

exchange commissiones are 1/10, broker comm dont know
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Dude, have you even read this thread?

Yes the exchange fees are 1/10th = 0.039c to 0.06c depending on your membership/volume

However, the guy from velocity said he would be charging around $2 a rt. That makes this WORSE than trading at a bucket shop. For this to be viable you need to be paying 1/10th of the full size contract commission, somwhere in the range of
0.10c to 0.40c again depending on your membership/volume
 
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