Trading the EUR/USD vs either the 6E or the E7 ?

M

md2324

I am just curious , if trading one over the other has any benefit

I know that with the EUR/USD ( Forex ) , you have the option to position size your trades , with the use of various size Lots ...... micro , mini and standard

Given this option with trading the EUR/USD , why then would one want to trade the 6E or E7 ?
There are the Micro versions of the 6E and E7 that can be traded , to allow for Position sizing ones trades within the Futures/Commodities

Not saying one is better than the other , just curious as to the differences / Pros and cons to each

Thanks so much
 
md2324 said:
I know that with the EUR/USD ( Forex ) , you have the option to position size your trades , with the use of various size Lots ...... micro , mini and standard

Given this option with trading the EUR/USD , why then would one want to trade the 6E or E7 ?
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I think the two main reasons, for many people, are ...

(i) to have volume available (it's true that you can trade spot EUR/USD using the Euro futures front month volume as a guide, but if you're doing that, it's generally easier and more reliable to trade the futures directly, account-size permitting); and ...

(ii) to be able to trade via a genuine broker who isn't involved in the outcomes of your trades, rather than against a counterparty market-maker who holds the other side of your position while also holding your deposited funds and making up and interpreting most of the rules governing the "trades", or, in other words, to trade in an honest(ish), transparent(ish), free market rather than a notoriously far dodgier one.


md2324 said:
There are the Micro versions of the 6E and E7 that can be traded
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They have (by comparison) little liquidity and greater slippage.


md2324 said:
Not saying one is better than the other
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I am, though: in my opinion, spot forex is generally worse ... but micro-futures, admittedly, can entail significant liquidity/slippage issues. (This is perhaps a slightly simplified view: the realities of trading spot forex actually vary to some extent from country to country according to each country's legal and regulatory processes.)

Just my perspective.
 
Xela said:
I think the two main reasons, for many people, are ...

(i) to have volume available (it's true that you can trade spot EUR/USD using the Euro futures front month volume as a guide, but if you're doing that, it's generally easier and more reliable to trade the futures directly, account-size permitting); and ...

(ii) to be able to trade via a genuine broker who isn't involved in the outcomes of your trades, rather than against a counterparty market-maker who holds the other side of your position while also holding your deposited funds and making up and interpreting most of the rules governing the "trades", or, in other words, to trade in an honest(ish), transparent(ish), free market rather than a notoriously far dodgier one.





They have (by comparison) little liquidity and greater slippage.





I am, though: in my opinion, spot forex is generally worse ... but micro-futures, admittedly, can entail significant liquidity/slippage issues. (This is perhaps a slightly simplified view: the realities of trading spot forex actually vary to some extent from country to country according to each country's legal and regulatory processes.)

Just my perspective.
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what is slippage?
 
Personally the 2 brokers I deal with require a separate account of funds to trade forex while I can simply use my same funded account for /6e and /6b. So for me I don't need separate accounts and the Fx futures have plenty of liquidity and action for me to get in and out of both these currencies without any issues. As with the other million times issues are discussed on ET, it is not about which is better, but which is better for you.
 
6E is futures which u can trade through CME exchange.

I believe E7 is spot price from Market maker.
You can't get accurate volume data from market maker.


volume traded through CME exchange is huge.
Further you can plot volume chart which is necessary for my trading.
So I trade 6E futures.
 
continue ....
6E data from CME is not free. have to pay for it.

data from Market maker normally free but you pay for it indirectly through commission or bid/offer spread.

so good to start with free data first, then later u might want to migrate to paid data.
 
maxinger said:
volume traded through CME exchange is huge.
Further you can plot volume chart which is necessary for my trading.
So I trade 6E futures.
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In my case is the 6E contract size a bit too large (too volatile/risky). So I use the M6E instead. But you have to be careful with slippage when using M6E.
 
Ever wonder why a number of old timer futures traders jump on the spot market to trade currencies?

This was posted Peter Brandt - a wildly successful 40+ years futures trader that endorses using spot Fx over futures. You should use a regulated broker with a clean record - for both Fx & futures.

The HFT programs recognized the stack of IMM stops starting at .9936 when the market was trading at .9953. The HFT sold the market heavily into the stops so that the sell stops cascaded. The HFTs then took the over side of the cascading sell stops, covering the sales required to create the cascade. Once the stops were cleared up the market traded up 56 points without a trade.



5.11_USDCAD1.jpg



FX_Size.PNG
 
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