May try the FX micro futures for position trades

[day4night]

The bid/ask spreads seem to be getting better. Anyone been trading 7E, 7A and so on?

I'm considering using them to synthetically "change" small (10K) accounts' funding currency. For example, create the interest and FX risk that an account would have if it were denominated in Aussie though it's a USD account.

Advantages over cash FX: the interest! For ex Dec Aussie is 50 points (or pips) under the cash. That's the interest payment you'll receive for holding it (futures will converge with cash until expiration). Hold 6A from now to expiration and you take $500 in interest. Broker doesn't skim (or scam) your interest payments away.

Also these little guys seem nice for longer term position trades in general. As in several months at a time.

Any thoughts? Still not liquid enough? Reasons to stay away?

 

[day4night]

I'd said 7E, 7A -- sorry, meant M6E, M6A and so.

Anyway I've been watching the order book since then. Seems like most liquidity is from arbitrageurs, judging by the preponderance of 10-lots and low volume. Also at some times spread can widen dramatically, but at least arb liquidity always seems to come back after a bit. 3-4 pip spreads in M6E, 3-5 in M6A (euro and aussie).

Of course add commissions and it ain't no bargain unless you earn positive carry for a while (like being long M6A). $2.70 r/t at Interactive so another three pips!