price777999
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when will Forex E-micro futures contracts get more liquid ?
months ? years ? any idea anyone ?
months ? years ? any idea anyone ?
Forex E-micro futures contracts
- Thread starter price777999
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Rhody Trader
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They've only just been launched. Give it some time to see if the volumes ramp up. Not that I think they'll be competing with spot volumes any time soon.
Rhody Trader
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No, that's not tasty to the large funds. They mostly don't even play in the futures market because spot is so much deeper and more flexible in terms of trade sizes. Plus there aren't the transaction costs involved in exchange trading.
rawrschach
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Only 2200 traded today on EURUSD.
I think the revenues generated for brokers, exchanges, ISV's far outweigh the utility they provide to currency traders.
Perhaps they will prove useful as a transition instrument from spread better to ECN, as a tool for better understanding liquidity / market depth / spread, but TBH if you are dealing at $1 per point then you should probably be spread betting, it will be cheaper - on the other hand, if you are doing 5 or 10 lots, one of the better known ECN's will do (Lava, Currenex etc... Hotspot have been bought out by FXCM
)
Perhaps they will prove useful as a transition instrument from spread better to ECN, as a tool for better understanding liquidity / market depth / spread, but TBH if you are dealing at $1 per point then you should probably be spread betting, it will be cheaper - on the other hand, if you are doing 5 or 10 lots, one of the better known ECN's will do (Lava, Currenex etc... Hotspot have been bought out by FXCM
)
tar
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commissions is not reduced to 1 tenth , for example the eur/usd e micro contract commissions is 2.7 $ RT @ IB which equals more than 2 pips , and u should to pay spread as well so it is not worth it ...
i happen to know a very large fund trader that trades on this micro and other futures securities. here is an article of just one fund working within the futures market Renaissance raising new fund to trade futures | Deals | Mergers & Acquisitions | Reuters .Before you can say things like it isnt tasty to large funds i suggest you at least get your facts right before you assume. There are plenty of benefits including none time based charts, instant execution, volume traded = lower costs. i could go on with benefits but large funds get even more benefits than guys like us because of what they bring to the table.
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rawrschach
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If yesterday's volume was just 2000 how large could he be? Maybe he trades the mini.
N Rothschild
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um they will be trading e-mini's not micro...
as i said i know a large fund trader trading the micro. the benefit he gets is being able to open exactly the position size he wants and not have to open a position where a contract size means $6 or $12 per point. it also means he can scale in or out with more control over risk\profits
N Rothschild
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cant be to large if there worried about that..
lets just say one of his clients is the sultan of brunei and he doesnt just look at one type of security this is just a piece of what he looks at in the wider picture.
N Rothschild
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im sorry but i think your talking total ****. there is no liquidity in a micro contract to be able to move any size what so ever.
rawrschach
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This is what yesterday's trading looked like.
