transaction costs in futures

zktier

Junior member
11 0
I have been trading spotforex and one usually pay 2 pips RT with the brokers and that makes scalping hard. How does it work with futures. If you for example trade the 6E. I guess the commission is generally around 4 dollars RT. If you put in a buy stop and get filled are you also down the spread of one tick thats is 12,5 dollar. Or do I get filled when the bidprice hits my buy stop and that the spread is zero but that there might be slippage?
 
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bootsyjam

Active member
229 21
Using Interactive Brokers as an example, off the top of my head I think it's $2 or 2.50 per side, so 4 or $5 roundtrip, spread is usually 1 pip on EURUSD. But with EURUSD, 1 contract = $12.50 per point so is good value. Same with trading Dow Jones-$5 per pip but as the numbers are so big (you're looking at big moves) it works out ok. Less so with GBUSD, same round trip costs but one contract is approx $5 per point, so to make the same exposure as eurusd you're paying doluble the commission. Am joining a company called LMAX, really low commission+low spreads so all works out well. Not a great trading platform but execution and costs are v cheap so who cares!
 

zktier

Junior member
11 0
Yes, but if my buystop get filled and I want to sell one second later and the quote is still the same. Then I have to sell att the bid and and loose 12,5$ plus commission. Bacause I cant sell at the offer I suppose? Sorry I am a bit slow :) but I need to understand this.
 
 
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