Safety and Security of the E-micros As futures contracts, E-micro products are part of an exchange-traded, regulated market.
Why Open a Cent Account?
E-micro forex futures contracts include six exchange-traded currency futures contracts that are one-tenth the size of the traditional currency futures contracts. For the trader or investor, this equates to reduced margin requirements and less risks than are associated with the E-micro's big brothers.
The E-micro forex futures contracts are traded exclusively on CME Globex, which is the Chicago Mercantile Exchange's electronic trading platform and the world's largest regulated forex marketplace. Figure 1 shows a comparison of contract specifications between the standard currency futures contracts and their corresponding E-micro contracts.
These three smaller contracts are fully fungible with the full-size forex futures contracts. Three of the contracts are fully fungible with the CME group's full-sized forex futures contracts: Margins and exchange fees are scaled down proportionately to the full-size contract.
Regularly updated margin requirements for the E-micro contracts can be found by contacting the CME. For related reading on margin, take a look at Forex Leverage: Like other futures products, each contract has specifications regarding the size of the contract, the minimum price increment and the corresponding tick value. These specifications allow traders to understand the dynamics of each contract and determine the potential profit or loss for particular price movements.
Figure 2 also shows each contract's ticker symbol. As futures contracts, each symbol must also be followed by the contract month and year to define the particular contract. The E-micro forex futures contracts trade with set expiration dates on a quarterly cycle, with contract months falling in March designated as "H" , June "M" , September "U" and December "Z". Safety and Security of the E-micros As futures contracts, E-micro products are part of an exchange-traded, regulated market.
Unlike the cash forex market, where different participants see different prices depending on the broker , pricing is centralized and all market participants have access to the same wholesale bid and ask prices with E-micro forex futures contracts.
Forex futures operate differently from traditional futures. There are no major differences in the structure of traditional accounts and cent accounts; the main element which distinguishes the two is that regardless of how much money you deposit, your balance will always appear in cents. What's the philosophy behind it?
The Cent Account has been designed for small depositors and newcomers to the forex industry. It's most suitable for those who wish to trade with a lower deposit and grants access to the markets to all those who want to trade but cannot risk losing too much.
Furthermore, it acts as a smooth shift from demo accounts to real accounts as it gives traders the chance to become familiar with using a forex account before trading with large sums of money. The maximum volume per trade on our Cent server is Cent lots which is equal to 1 Standard lot or , units. Add the following FXTM number to your contact list: Find FXTM by searching on the top search bar.
Please send us an email at support forextime. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.