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Trading the new CME E-Micro's (E micro) MES, MNQ, MYM, M2K and other micros
It is precisely for the same reason that Mirco FX and for that matter all the other Micros did not work: low leverage and no liquidity.
The large institutions create liquidity for the retail traders through hedging or speculation.
This was always the case, and I do not see it change for the foreseeable futures.
I am sorry, but I just do not see the large institutions trading on $5 lots, and liquidity between small retail players may not sustain such a venture. This leverage of $5 per point may allow some swing traders and long term plays, but this is not enough for day trading.
The CME is not the only exchange that tries to earn retail, the CBOE tried it with Bitcoin which is canceled after the March contract, the FANG contract by ICE (non-event).
Meantime, this entire infrastructure of quotes, servers, and ad promos will only add additional cost that may be reflected in your data fees and our professional fees.
I would like to remain optimistic and hope that this contract does have the liquidity it needs, and it does provide the training wheel for small traders.
Having said all the above, I recognize that there are small traders that the typical leverage could be too high for their account, and it is hard to sustain drawdowns.
This is why I started creating relationships with Spot FX operators, who do allow small accounts and have sufficient liquidity for day traders. Narrow spreads, no cost of quotes and as mentioned have adequate liquidity. For larger Spot FX traders, we can provide interbank spreads and commissions based trading as well. As we go forward, it was necessary for Optimus to provide FX because many people want to start out in leveraged capital markets but do not have the capital to start out in Futures.
Matt Z
Optimus Futures
There is a substantial risk of loss in futures trading. Past performance is not indicative of future results.
Trading futures and options involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results. You may lose more than your initial investment. All posts are opinions and do not claim to be facts. Please conduct your own due diligence. Use only Risk capital when trading Futures.
1 800 771 6748 local 561 367 8686 email [email protected]
I got a PM about this tread but decided to post it here. Just so people know, if someone is quoted, they are notified. Anyway…
Ninja allows connection to FXCM. In the US, CFDs are not permitted, in the EU you are allowed to trade with FXCM UK, which has a fairly high margin rate and no daytrading reduction. In other parts of the world you can trade with FXCM Australia, which has much lower margin rates. For me, I’m glad I’m in the EU; I can trade on the NT platform, but can’t cut myself to shreds. Well, at least not without a lot of determined stupidity.
If you are trading with Sierra Charts, you can use LMAX, which is better IMO because they offer firm liquidity without “last look”. Before trading CFDs, be sure you understand the concept of last look well. It basically means market makers don’t need to take your limit orders even if the market goes past where you put them, or can wait until the market has gone so far to accept them that essentially you get a crappy fill.
Lastly, if you form an offshore corporation and trade through it, some brokers will look at the corporate address instead of the address of the owner of the corporation to determine CFD eligibility and margins. [Read the last sentence again slowly.]
YMMV, and brokers are free to change their rules at any time, but for those with limited capital, this might be a creative way to get started. In fact, I think it would be a good idea for a separate thread, but I’ve got enough on my plate already.
Slightly off-topic and this may be a silly question but I don't want to make assumptions that I haven't verified. "Last look", the way I understand it, is isolated to spot forex, and not an issue in futures markets because of the exchange over-sight, is this actually true?
Well, I've got a lot of code invested in NT, which is paid for. Sierra is subscription only.
FXCM has smaller contract sizes, but LMAX has firm liquidity. The topic could turn into a thread of it's own, but briefly, have a look here:
and if you're a glutton for punishment, here:
Anyway, as with everything else in this biz, find what works for you. I only share my perspective so people are more informed. If you make money another way, good on ya.
