IS EUR/USD too risky to trade? - Currency Futures | futures io social day trading
futures io futures trading


IS EUR/USD too risky to trade?
Updated: Views / Replies:3,542 / 30
Created: by jodistrict Attachments:1

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  
 
Thread Tools Search this Thread
 

IS EUR/USD too risky to trade?

  #1 (permalink)
Elite Member
san diego
 
Futures Experience: Intermediate
Platform: FXCM MarketScope, NT, Interactive brokers, AMP
Broker/Data: FXCM, Interactive Brokers
Favorite Futures: FOREX, IWM, SPY, XLE, NQ
 
Posts: 219 since Apr 2010
Thanks: 70 given, 122 received

IS EUR/USD too risky to trade?

I have been trading EUR/USD for a few weeks on FXCM. I have noticed that there can be high volatility spikes on the one minute bar at unpredictable times. When this happens, your stop slips and you get out with a large loss. Furthermore, these high volatility spikes donít appear on the stocks or futures at those same times.

I have an example today below. There was a sudden 26.6 pip up spike followed by a 62.5 pip down spike. On the down spike, slippage on that stop on a 100,000 contract could result in a $625 loss.

How do other traders deal with this? Is it better to use futures, which doesnít have this behavior?

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

Reply With Quote
 
  #2 (permalink)
Quick Summary
Quick Summary Post

Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.

 
  #3 (permalink)
Trading for Fun
Kalispell montana
 
Futures Experience: Beginner
Platform: ninjatrader
Favorite Futures: es
 
Posts: 158 since Jan 2015
Thanks: 157 given, 23 received


Look forward to hearing some experience traders input on this issue...

Reply With Quote
 
  #4 (permalink)
Elite Member
Quebec
 
Futures Experience: Intermediate
Platform: NinjaTrader wt Rancho Dinero's profiling tools
Broker/Data: Stage 5 trading/AMP/CQG
Favorite Futures: ES, NQ, YM
 
trendisyourfriend's Avatar
 
Posts: 3,697 since Oct 2009
Thanks: 3,041 given, 4,496 received

Use a timeframe where such noise and slippage is not a concern.

Reply With Quote
The following 2 users say Thank You to trendisyourfriend for this post:
 
  #5 (permalink)
Trading for Fun
Kalispell montana
 
Futures Experience: Beginner
Platform: ninjatrader
Favorite Futures: es
 
Posts: 158 since Jan 2015
Thanks: 157 given, 23 received


trendisyourfriend View Post
Use a timeframe where such noise and slippage is not a concern.

Wondering, with a longer timeframe that eliminates the noise, this would also require a larger stop loss?

Reply With Quote
 
  #6 (permalink)
Trading for Fun
Boston, MA
 
Futures Experience: Intermediate
Platform: Sierra Chart
Broker/Data: Interactive Brokers, AMP/CQG
Favorite Futures: N225M (Osaka), ES
 
Posts: 165 since Dec 2014
Thanks: 60 given, 112 received

If you were using tight stops (as you probably should be on a 1 minute chart...), you should not have had any serious problems. The market could have gone against you a million ticks, and it wouldn't have mattered - if you had a stop-loss in place you would have been safe to trade yet another day. I doubt liquidity dropped low enough to give you much slippage in that bear bar (especially if you were only trading 1 lot), so your stops would have been OK.

If losing $600 is too big of a deal for you, and you lost it on this trade, then next time use stops and position sizes that you can be comfortable with. If you are losing a lot of money when things like this happen, you aren't managing your trades properly. The same things happen in every market - not just forex. Futures aren't an exception. Go look at oil futures, for example. Manage your trades properly, use position sizes that you can handle, and use stop-loss orders.

Reply With Quote
The following user says Thank You to mangolassi for this post:
 
  #7 (permalink)
~R!$K~
Volcano, HI
 
Futures Experience: None
Platform: Ninja
Broker/Data: AMP/CQG
Favorite Futures: Futura2000
 
dakine's Avatar
 
Posts: 188 since Dec 2009
Thanks: 379 given, 131 received

I trade 6e and the only time I don't like to hold a trade is during NFP and when Draghi is speaking. My max slippage on a stop during news has been 6 ticks. And yes imo futures is better, I have never traded forex.

Reply With Quote
 
  #8 (permalink)
Shakes
Alexandria, Minnesota
 
Futures Experience: Beginner
Platform: Ninja trader
Broker/Data: IB / IQFeed
Favorite Futures: Forex
 
Posts: 135 since Jun 2014
Thanks: 30 given, 33 received


mangolassi View Post
If you were using tight stops (as you probably should be on a 1 minute chart...), you should not have had any serious problems. The market could have gone against you a million ticks, and it wouldn't have mattered - if you had a stop-loss in place you would have been safe to trade yet another day. I doubt liquidity dropped low enough to give you much slippage in that bear bar (especially if you were only trading 1 lot), so your stops would have been OK.

If losing $600 is too big of a deal for you, and you lost it on this trade, then next time use stops and position sizes that you can be comfortable with. If you are losing a lot of money when things like this happen, you aren't managing your trades properly. The same things happen in every market - not just forex. Futures aren't an exception. Go look at oil futures, for example. Manage your trades properly, use position sizes that you can handle, and use stop-loss orders.

+1.On some days, there is 100+ PIP move up or down. Especially if the Fed announces something. If you're a beginner, you should use smaller position sizes and adequate stops to preserve your capital. But that's just IMO and start a journal.
Best regards,
Brian

Reply With Quote
 
  #9 (permalink)
Trading for Fun
Kalispell montana
 
Futures Experience: Beginner
Platform: ninjatrader
Favorite Futures: es
 
Posts: 158 since Jan 2015
Thanks: 157 given, 23 received


Magiklair View Post
+1.On some days, there is 100+ PIP move up or down. Especially if the Fed announces something. If you're a beginner, you should use smaller position sizes and adequate stops to preserve your capital. But that's just IMO and start a journal.
Best regards,
Brian

From what I have seen in futures, the spikes are usually during times that are known to the trader. Can I assume that this is also true in forex?

Reply With Quote
 
  #10 (permalink)
Trading for Fun
Boston, MA
 
Futures Experience: Intermediate
Platform: Sierra Chart
Broker/Data: Interactive Brokers, AMP/CQG
Favorite Futures: N225M (Osaka), ES
 
Posts: 165 since Dec 2014
Thanks: 60 given, 112 received



sledmt View Post
From what I have seen in futures, the spikes are usually during times that are known to the trader. Can I assume that this is also true in forex?


This is simply not true. I hope you realize that futures contracts are a very diverse group of products. There are futures contracts on stock indices, oil, metals, currencies, etc... Are you saying that the 6E usually has volatility during known times, while the underlying spot market EUR/USD usually has volatility during unknown times? I trust that you see the fallacy in your argument.

The chart that you posted doesn't even contain that scary of a spike. What you showed DOES happen from time to time, in all markets, and in all time frames. You just have to be prepared with proper trade management. If your account is taking a beating, please don't blame the market you are trading (EUR/USD). In trading, there is only one person to blame - yourself.

Reply With Quote

Reply



futures io > > > > IS EUR/USD too risky to trade?

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
EUR/USD profxvictory Trading Journals 1 February 23rd, 2015 08:34 AM
Slippage for large(r) trade size in EUR/USD moses Currency Futures 4 May 26th, 2013 05:02 PM
symbol/contract to trade eur/usd with a 30k IB account sprooz Currency Futures 7 October 25th, 2012 09:27 AM
Migrating from ES to EUR.USD mainstream Traders Hideout 10 July 5th, 2010 08:03 PM


All times are GMT -4. The time now is 12:19 AM.

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 2017-12-13 in 0.14 seconds with 20 queries on phoenix via your IP 54.221.93.187