es/pip wrote:adaseb wrote:MightyOne wrote:adaseb wrote:ES/PIP
How do the currency futures work exactly.
I know the
But it feels weird trading these when they are not connected to another pair like it is on the cash forex.
They are connected to the dollar as es/pip said.
Oh I see. So futures are worth getting into if you primarily trade larger than 1 full lots? Since you pay a 1 pip spread instead of the 2-3 on some pairs.
How much money do you need to put down to buy one of those contracts?
Is it like the options in stocks where 1 contract handles 100 shares. Where here 1 contract handles 100,000 units of currency?
they tick at 12.50 per tick so that would be 12.5 small lots or 125, 000
its 500 margin per contract
yeah you need to have decent amount of money just because you lose the ability to compound at the smaller levels via mini/ micro lots
the euro ticks at 12.50 not sure about the other ones---probably be the same if not its close i'm sure
This is the forex-futures products homepage from CME: http://www.cmegroup.com/trading/fx/
http://www.cmegroup.com/trading/fx/fx-p ... aders.html
They have also introduced E-Micro's for EUR/USD, USD/JPY, GBP/USD, USD/CAD, AUD/USD, USD/CHF with 1/10 of the contract size, comparable to microlots in spot. The only issue right now is that the volume is low.