EURUSD 6E Euro - Currency Futures | futures io social day trading
futures io futures trading


EURUSD 6E Euro
Updated: Views / Replies:271,295 / 2,361
Created: by Big Mike Attachments:1,054

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 1,054  
 
Thread Tools Search this Thread
 

EURUSD 6E Euro

  #2281 (permalink)
Elite Member
London, England
 
Futures Experience: Beginner
Platform: NT, TOS, MT4
Broker/Data: TOS, CQG (NT), FXCM
Favorite Futures: ES, 6E
 
chr1s's Avatar
 
Posts: 439 since Sep 2014
Thanks: 1,673 given, 651 received


dom64 View Post
Sorry, I give up, I am running ouf of ways to explain the same thing to the same question, which does not even really matter in the 1st place quite frankly. Does it really matter how it technically does follow the spot? It just does, that's the way it is, values are slightly different as it is not the spot but a future contract on the spot, which becomes the spot, i.e, matches spot bid/ask upon contract delivery.

Why would one want to know exactly how this is done? Do you think there is something secret or magical about to find out that thousands of very competent financial institutions who trade future contracts have not seen/do not know yet? It follows the spot value (EQUALS =) initially, and this is all there is to know. I think that any other revelation about the subject will not be found here, not matter how many times the question gets asked.

Please let us know what the CME's explanation is, can't wait..

I think this is a good educational discussion here, can I just ask what's the point of depth and order flow of 6E when it follows spot (which may have orders in different places)? If there is a larger buy order at some level on 6E and I hide my stops behind it then suddenly at some bank sell orders are executed pushing price way down what's the point of someone looking at the depth of 6E when it does not have banks orders (nobody has)?

Thank you
Chris

Consistency over time
Reply With Quote
The following user says Thank You to chr1s for this post:
 
  #2282 (permalink)
Market Wizard
Bamberg, Germany
 
Futures Experience: Beginner
Platform: Sierra Chart
Broker/Data: IB, SierraCharts data
Favorite Futures: mini FDAX, ES, GC
 
Posts: 924 since Oct 2014
Thanks: 10,753 given, 2,006 received
Forum Reputation: Legendary

maybe the euro will break out to the upside of this triangle but on the other hand perhaps a small double top may have formed (the highs from 4th and 10th with reducing volumes) so we may test the lower side of the triangle. Jobless report this afternoon so we shall see..
Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).


and the dollar index is below the 28 ema.
Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).


Last edited by JohnS; June 11th, 2015 at 03:19 AM. Reason: added DX picture and updated M6E picture
Reply With Quote
The following user says Thank You to JohnS for this post:
 
  #2283 (permalink)
Membership Temporarily Revoked
London, UK
 
Futures Experience: Master
Platform: sierra chart, Jigsaw Trading, Bookmap
Favorite Futures: 6E futures, Cable
 
Posts: 93 since Aug 2012
Thanks: 3 given, 123 received



chr1s View Post
I think this is a good educational discussion here, can I just ask what's the point of depth and order flow of 6E when it follows spot (which may have orders in different places)? If there is a larger buy order at some level on 6E and I hide my stops behind it then suddenly at some bank sell orders are executed pushing price way down what's the point of someone looking at the depth of 6E when it does not have banks orders (nobody has)?

Thank you
Chris

I thought this was more of a EUR-USD thread but this is turning into the basics of Futures contracts.
The "point" of trading from a DOM on the 6E is that it is a centralised market, where you can see Limit orders vs Market orders, exchanged volumes, and open interest.
FX is an OTC market and does not have the above and you don't get an official DOM.

Although the 6E follows the spot as it is initially a contract on the spot, this should be seen as separate instruments. So choose to work the spot or the Future contract, and big orders on the spot will be "priced" in the 6E so no need to worry that you will not see what happens on the spot if you look at the depth of the 6E (you will never see what happens on the spot anyway). Not sure what the last part means in relation to bank orders sorry.

Reply With Quote
The following 2 users say Thank You to dom64 for this post:
 
  #2284 (permalink)
Elite Member
Lima Peru
 
Futures Experience: Advanced
Platform: Sierra Multicharts TT CQG
Favorite Futures: ES CL
 
Posts: 48 since May 2012
Thanks: 291 given, 73 received


aaaaaa225 View Post
Simple question really I'm wondering if anyone knows what is making them follow eachother.

as someone already mentioned-what makes any liquidly traded futures contract follow its underlying cash market is simply the buying & selling of the arb traders. The futures is the exact equivalent of the cash with the additional premium of the time value of money until the expiry (plus the value of dividends in an equity index, or the cost of warehousing & transport for a commodity). If you can capture the mispricing between fair value of the futures & the current spot rate - thats pure arbitrage = free money. You buy one sell the other & either hold the position to expiry, or trade out of it when the basis flips the other way. There are a ton of prop desks around the world with automated systems tracking & trading this 24 hours a day. Back in the day the mispricing was huge. Nowadays it gets whacked back into line before you'd ever notice it, except in situations of extreme volatility.

So as was mentioned, pure arbitrage is the reason the futures "follows" the spot.

Hope this helps,
Brian

Sent from my SM-N900 using Tapatalk

Reply With Quote
The following 3 users say Thank You to bebop for this post:
 
  #2285 (permalink)
Membership Temporarily Revoked
London, UK
 
Futures Experience: Master
Platform: sierra chart, Jigsaw Trading, Bookmap
Favorite Futures: 6E futures, Cable
 
Posts: 93 since Aug 2012
Thanks: 3 given, 123 received


bebop View Post
as someone already mentioned-what makes any liquidly traded futures contract follow its underlying cash market is simply the buying & selling of the arb traders. The futures is the exact equivalent of the cash with the additional premium of the time value of money until the expiry (plus the value of dividends in an equity index, or the cost of warehousing & transport for a commodity). If you can capture the mispricing between fair value of the futures & the current spot rate - thats pure arbitrage = free money. You buy one sell the other & either hold the position to expiry, or trade out of it when the basis flips the other way. There are a ton of prop desks around the world with automated systems tracking & trading this 24 hours a day. Back in the day the mispricing was huge. Nowadays it gets whacked back into line before you'd ever notice it, except in situations of extreme volatility.

So as was mentioned, pure arbitrage is the reason the futures "follows" the spot.

Hope this helps,
Brian

Sent from my SM-N900 using Tapatalk

totally agree Brian as I stated in one line too but far less detailed that your explanation! Thanks, that will satisfy all those curious minds! ;-)

Reply With Quote
The following user says Thank You to dom64 for this post:
 
  #2286 (permalink)
Market Wizard
Bamberg, Germany
 
Futures Experience: Beginner
Platform: Sierra Chart
Broker/Data: IB, SierraCharts data
Favorite Futures: mini FDAX, ES, GC
 
Posts: 924 since Oct 2014
Thanks: 10,753 given, 2,006 received
Forum Reputation: Legendary


bebop View Post
as someone already mentioned-what makes any liquidly traded futures contract follow its underlying cash market is simply the buying & selling of the arb traders. The futures is the exact equivalent of the cash with the additional premium of the time value of money until the expiry (plus the value of dividends in an equity index, or the cost of warehousing & transport for a commodity). If you can capture the mispricing between fair value of the futures & the current spot rate - thats pure arbitrage = free money. You buy one sell the other & either hold the position to expiry, or trade out of it when the basis flips the other way. There are a ton of prop desks around the world with automated systems tracking & trading this 24 hours a day. Back in the day the mispricing was huge. Nowadays it gets whacked back into line before you'd ever notice it, except in situations of extreme volatility.

So as was mentioned, pure arbitrage is the reason the futures "follows" the spot.

Hope this helps,
Brian

Sent from my SM-N900 using Tapatalk


dom64 View Post
totally agree Brian as I stated in one line too but far less detailed that your explanation! Thanks, that will satisfy all those curious minds! ;-)

Thanks @dom64 and @bebop for the explanation! This "whacked back into line" is especially pronounced on the thinly traded E7...I traded it a bit and it was not fun..the deeper M6E is much better.

Reply With Quote
The following user says Thank You to JohnS for this post:
 
  #2287 (permalink)
Market Wizard
Bamberg, Germany
 
Futures Experience: Beginner
Platform: Sierra Chart
Broker/Data: IB, SierraCharts data
Favorite Futures: mini FDAX, ES, GC
 
Posts: 924 since Oct 2014
Thanks: 10,753 given, 2,006 received
Forum Reputation: Legendary

taking the short view today looking at a scalp towards S2 depending on the price action at S1. Good Trades everyone! John
Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).


edit: closed at 1,1257


Last edited by JohnS; June 12th, 2015 at 03:11 AM. Reason: status
Reply With Quote
The following 2 users say Thank You to JohnS for this post:
 
  #2288 (permalink)
Trading for Fun
West Java
 
Futures Experience: None
Platform: MotiveWave
Favorite Futures: AAPL, Bund, FX
 
Posts: 145 since Apr 2014
Thanks: 143 given, 122 received


JohnS View Post
maybe the euro will break out to the upside of this triangle but on the other hand perhaps a small double top may have formed (the highs from 4th and 10th with reducing volumes) so we may test the lower side of the triangle. Jobless report this afternoon so we shall see..

Thanks , i think i'll start looking for buy setup at the end of asian session ... we'll see.

Reply With Quote
The following user says Thank You to Thxo for this post:
 
  #2289 (permalink)
Elite Member
London, England
 
Futures Experience: Beginner
Platform: NT, TOS, MT4
Broker/Data: TOS, CQG (NT), FXCM
Favorite Futures: ES, 6E
 
chr1s's Avatar
 
Posts: 439 since Sep 2014
Thanks: 1,673 given, 651 received


dom64 View Post
I thought this was more of a EUR-USD thread but this is turning into the basics of Futures contracts.
The "point" of trading from a DOM on the 6E is that it is a centralised market, where you can see Limit orders vs Market orders, exchanged volumes, and open interest.
FX is an OTC market and does not have the above and you don't get an official DOM.

Although the 6E follows the spot as it is initially a contract on the spot, this should be seen as separate instruments. So choose to work the spot or the Future contract, and big orders on the spot will be "priced" in the 6E so no need to worry that you will not see what happens on the spot if you look at the depth of the 6E (you will never see what happens on the spot anyway). Not sure what the last part means in relation to bank orders sorry.

Thanks dom64 and debop for patience and explanations. What I meant by "banks orders" is that very large spot traders who don't trade futures can have their orders waiting which are invincible to anybody including 6E traders. The arbitrage will make the price follow but there will be no 6e market depth reason for the move (if they caused a blip) if they didn't hedge or placed the same order in futures - unlikely situation though

Thanks
Chris

sent from phone

Consistency over time
Reply With Quote
The following user says Thank You to chr1s for this post:
 
  #2290 (permalink)
Trading for Fun
West Java
 
Futures Experience: None
Platform: MotiveWave
Favorite Futures: AAPL, Bund, FX
 
Posts: 145 since Apr 2014
Thanks: 143 given, 122 received



Thxo View Post
Thanks , i think i'll start looking for buy setup at the end of asian session ... we'll see.

Change of plan ... long here,

Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).


will hold until end of asian session ...

Reply With Quote
The following user says Thank You to Thxo for this post:

Reply



futures io > > > > EURUSD 6E Euro

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

Jigsaw Trading: TBA

Elite only

FuturesTrader71: TBA

Elite only

NinjaTrader: TBA

Jan 18

RandBots: TBA

Jan 23

GFF Brokers & CME Group: Futures & Bitcoin

Elite only

Adam Grimes: TBA

Elite only

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
Trading mini euro ( E7) or micro euro (M6E) currency futures ??? rw48gmx Currency Futures 115 November 14th, 2017 04:58 PM
NinjaTrader tick charts for Scalping the 6E Euro TickTrader Currency Futures 5 October 15th, 2011 10:27 AM
6E (EURUSD) trading alex123 Elite Trading Journals 35 September 17th, 2011 09:15 PM
6E and Euro spot key levels josh Currency Futures 5 July 23rd, 2011 12:25 PM
Big discrepancy 6E/@EU# vs. EURUSD spot Laurus12 Currency Futures 7 June 9th, 2011 09:12 PM


All times are GMT -4. The time now is 06:55 PM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-12-14 in 0.19 seconds with 20 queries on phoenix via your IP 54.226.227.175