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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
I've been following these markets for a few months now, asking myself and others the same questions.
If you can afford it, no question the full size 6E is the way to go. It's the highest volume/most liquid of the currencies. Tick size is $6.25, and maintenance margin is $2100.
The M6E would be next, but it has a very tiny fraction of the volume. I've traded it a couple of times, had no trouble getting in or out when it's busy, but that was with just one contract. It could probably carry 3-5 but slippage could be an issue. The spread can be a bit larger. Many times a full day of ETH trading will result in less than 10K contracts changing hands. At $1.25/tick, it's quite attractive from a learning standpoint, which is what initially attracted me. Not very scalpable.
If you want to swing trade, either of these could be good.
The E7 is virtually a dead zone. Not much going on there.
There's some bad info here provided by yours truly, so for anyone looking, corrections are in order. First, all three contracts pretty much move in unison due to arbitrage. The full size 6E contract is $12.50/tick, maintenance margin depends on your broker. M6E is still a fine place to cut your teeth, just don't expect to make much money due to relative cost of commissions. E7 is also A-OK, has even less volume than M6E but at $6.25/tick at least offers some return on your time and money, and no crazy slippage noted by myself thus far at up to 6 contracts.
Hi Rrrracer, you had it right the previous post. 6E used to be 12.50/tick. Then, I think in January 2015, they changed its tick value to 6.25 (well, technically they just added half-price increments to the ladder, which were not there before, but the effect is the minimum price increment is now 6.25 USD as opposed to 12.50).
Futures has volume profiling. Massive advantage over spot. Check out feibels and rracers journals to see good examples of how to think and apply volume analysys. If you are still in the learning phase then I recommend trading small as you can on the currency market because you can trade live on very small amounts. Lots of lively discussion with regards live vs demo but my opinion is that you're wasting valuable time every moment you are on demo. Why do I say that? Emotions.
Technical is the easy part. The key thing is where your emotional boundaries are. Can you emotionally handle losing $200? That's 3 losing trades on 6e with a 10 tick stop on one contract. What if you're trading 3 contracts with a 10 tick stop and you get smacked 3 losing trades in a row.....Can you take it?
Rather your school fees cost you $100 than your entire trading account.
