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

[lovethetrade]

There's no advantage to having volume when trading fx. I.e you wouldn't switch from spot fx to fx futures because you can access volume data.

Spot fx is the way to go because of liquidity and potentially lower costs even though people associated with futures and the exchanges will want you to believe otherwise.

With spot fx just assume constant volume.

 

[globalarbtrader]

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

An important point which hasn't been covered by others is that for spot FX you don't earn the interest differential (carry) with a retail broker due to the markup on both borrowing and lending rates; but this is embedded in the futures price. So unless you're a lunatic who is day trading this stuff you'll be paying something like 1% a year of notional to hold your FX position (using IB spreads of +0.5% on a position of a million EUR and USD) relative to the futures. Trading forwards helps here, but the spreads are usually wider and not every broker offers them.

GAT

PS as far as costs go, the spread on the (full size) future is pretty similar to spot (about 0.5 tick) and the size is more than enough for most people; IB charge me twice as much in commission for a spot FX trade than for a single contract futures trade.

 

[iamnewuser911]

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.

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LOw liquidity so easier for HFTs to fuck you up?