6E and Euro spot key levels | Currency Futures


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6E and Euro spot key levels

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Big Mike View Post
What data feed are you using josh? I used to think similarly, but now that I trade EUR/USD via MB Trading as well as TT/Velocity, I think less of it. That is because there is often a 20 pip difference in prices between these two. Still, you will see on the MBT feed how price will stop at 1.44 but on the FXCM IQfeed or the TT feed it is 1.4420 for instance. And vice versa, where price may stop on TT at 1.4400 which is 1.4380 on MBT.

Mike

Thanks Mike, I'm using a kinetick feed. I suppose it's a case of me seeing the round numbers on 6E and wondering if there's any way that's anything other than random. Because I generally assume that the 6E is a mirror of the spot (in movement of course, as you said there is the price differential), and that the 6E in no way influences the spot (in other words, no one would buy or sell EURUSD because of what the 6E is doing, whereas the inverse is true).

This is in contrast to, for example, two-way arbitration which occurs in the s&p cash vs. the futures (as stocks are bought and sold, and futures are bought in sold, as the spread gets too out of balance). However, I suppose it's possible that someone would buy or sell EURUSD based on the futures contract, but somehow I doubt it. If anyone has any info on this specifically, I'd love to be educated about it!

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