The Downside of Trading Futures | Traders Hideout


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The Downside of Trading Futures

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Elite_Member
Wiltshire, United Kingdom
 
Trading Experience: Beginner
Platform: Jigsaw daytradr
Favorite Futures: US Equity Index Futures
 
matthew28's Avatar
 
Posts: 699 since Sep 2013
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The main disadvantage is large contract size and people not having large enough accounts to only be able to risk 1 or 2% on a trade. With Forex you have Micro, Mini and full size contract, generally with a pip value of 10 cents, $1 and $10 respectively (when most prices were 4 decimal places rather than 5). The Euro future was $12.50 a tick, now $6.25 a half tick as a fifth decimal place has been added.
Very few people start trading forex on full size contracts at $10 a pip. As others said it is much easier to control risk and scale in and out with smaller contract size unless you have a large account.

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