Obviously, you would start out simulating these trades and documenting your results. Since March 23, , the world of currency futures trading has added a new dimension aimed at the self-directed individual trader. Trading in a regulated market.
Liquidity of E-micro currency futures vs E-mini vs standard contract?
Soon, with enough practice, you have learned to follow your rules and possibly may have actually added a few dollars to your account. Then the transition to Futures is a little easier because you are more prepared skill wise and have a little more trading capital.
If you do not have a Spot Forex account then perhaps you might want to look at the micro Futures on some of the Currency markets. A few years ago when these products were introduced I would not have thought about telling somebody about these products due to the illiquid nature of them.
Today the Euro and Australian Dollar contracts appear to have adequate volume for holding positions overnight for smaller account sizes. There is still a huge difference in volume between the micro and the full size Futures contracts. Currently the Euro and Aussie are the two markets that have sufficient volume in the micro contracts, avoid trading the other micro currencies. These contracts trade on the Chicago Mercantile Exchange Group CME and if you already have the Globex data feed to trade Stock Indexes and other Futures you should be able to get these markets as well.
The contract trading hours and expiration months are the same as the full size contracts. The differences come in the minimum tick size, margin required and contract size.
The full size Euro Currency Futures contract trades , Euros. The Exchange traded symbol is EC plus month and year of expiration. For each minimum tick of. Traders will usually find the average daily volume to be about K contracts. The micro size Euro Currency Futures contract trades 12, Euros.
The Exchange traded symbol is M6E plus month and year of expiration. Traders will usually find the average daily volume to be about 10K contracts. The prices are always very close to each other on both contract sizes for arbitrage reasons. Therefore, you would use the full size contract to do your technical analysis and then place orders on the micro contract symbol. Obviously, you would start out simulating these trades and documenting your results.
If you find there is too much slippage bad fills then you would not proceed to trade with real capital. Feb 10, , 2: From that link I got this http: So probably no point in stretching from micro to mini in an attempt to get liquidity if you can't afford to go to the full contract.
If anyone has experience of trading these things E-micro currency futures , I would be happy to hear of your experiences, especially if you have previous experience of trading currencies via spread-betting. Jul 5, 8: Currency futures question regarding contract months. Apr 8, 1: Trade e-mini and e-micro futures on currencies.
Aug 21, 2: Micro, Mini and Standard Accounts?