Trading Forex Using Futures Trading Forex Using Currency Futures by Micah Palmer

I am so excited about Gail starting up her new Binary Options Trading signal service. Which will, I’m sure, prove to be an exciting adventure in trading. But, for that matter, most all trading is an adventure. And therein lies many of the problems for traders….the excitement. So, we look for ways to mitigate the excitement to a manageable level. What does a “manageable level” mean?

Well, as I examine my own trading the single biggest issue that is always starring me in the face is ME. I love the excitement of trading as well as the opportunity to make money doing it. But one person with his quirks and issues stand in my way… ME. Therefore, Gail tells us to start our learning in a simulated account. This reduces the emotional stimulation (excitement) to a point where we can learn the setups and techniques with less stress. Then move into markets with lower tick values and only trades with minimal risk, all this is done to reduce the stress and get us desensitized to trading “excitement”.

In that vane, and also for people with small accounts, I started looking around at markets that have low tick values and low margins. I started in TradeStation and found 3 little gems that I have been trading to see how they work and I really like them. They are E-Micro futures based on forex pairs.

eMini FuturesSymbolMargin per TradeStationTick Value
E-Micro AUD/USDM6A$220$1.00
E-Micro GBP/USDM6B$204$0.63
E-Micro EUR/USDM6E$391$1.25

Trading Forex Using eMini Futures

Trading Forex Using Currency Futures

These currency futures are offered by TradeStation, as well as by Amp Futures which actually offers 6 futures E-Micro instruments to trade with similar margins. My cost for a round turn and commission is $2.40. So, with a 10 tick stop and commission my max risk is between $8.50 and $15.00. Please note these are thinly traded instruments so you might get some slippage. But, looking at the Matrix shows plenty of order above and below price so entry and exit is not a hard thing to accomplish. With Slippage your risking $20 max. Not bad for a market to get your feet wet after coming out of the Sim.

Now some of you are going to open these charts and say WOW. As you can see from the chart below, they are gappy. But, remember these are based on the larger futures instruments, i.e. Aussie, Pound and Euro. In fact, I base my trades off the Aussie, Pound and Euro futures (AD, BP, and EC). In other words, I get my signals from Volume and chart patterns based on the regular sized futures but I trade on the E-Micros. With risk smaller, my issues are less magnified and I’m able to step up my stress level past Sim trading to learn to handle the stress involved with real money on the table. I hope this is helpful to those finding themselves on the trading journey.

trading forex using currency futuresTrading Forex Using Currency Futures E-Minis