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Day Trading the Euro FX 6E |
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By Greg Weitzman
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Day traders have a long term love affair with the Euro Fx market. First traders must understand that the Euro FX is not the same as the forex EURO/USD. While they both represent the value of the Eurodollar Currency the difference lies in the actual contract.
Forex is a spot or cash market, it is an unregulated market where traders are trading against their brokers, buying and selling out of their own inventory.
By contrast the EURO FX, is a currency futures. It represents the future value (delivery month) of the value of the Eurodollar Currency. The benefit to trading a futures contract over a forex contract is plain and simple regulation. Futures markets are regulated by futures exchanges like the CME, Chicago Mercantile Exchange, which provides a more transparent market place and better protection of client funds on deposit.
One of the greatest advantages of trading the 6E Euro Foreign Currency is its trading hours. Because currencies trade 24 hours a day it has a large appeal to traders from around the globe.
The Euro also offers good volatility on an intraday basis with daily ranges often exceeding 130 points (or pips)
For more updates from Greg, be sure to visit his blog at TheTradingZone.com |
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This website is for educational purposes only. Offers and events from 3rd party vendors are provided for convenience only. Trader Kingdom is not responsible for the content of a 3rd party website or their services.
Futures, options, and spot currency trading have large potential risk and traders should be well-educated before putting real money at risk. You must be aware of the risks and willing to accept them in order to invest in all markets. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. This website is neither a solicitation nor an offer to buy/sell a futures contract or currency.
