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Tokan Corner :  Day Trading And Night Trading For Penny Pinchers? Welcome To Micro Currency Futures (Thu May 19th, 2011, by barbara cohen)

There is a new wave in futures trading recently released by the Chicago Mercantile Exchange (CME)...Micro Currency Futures.  For those of you who are new to trading this might just be a way for you to get your feet in the door.  It's a tough economy for sure.  Everyone is trying to find a way to earn extra cash.  Many have tried trading in the past and lost their shirts.  Now with Micro Currency Futures, a novice trader can at least get started without risking their portfolio. What are Micro Currency Futures? The CME created these Micro contracts.  They are one tenth of the standard contract size.  That way beginner traders can start trading with real cash and lowered risk. Right now the available Micro Currency pairs are:  EUR/USD, USD/JPY, GBP/USD, USD/CAD, AUD/USD, USD/CHF.  These are the same currency pairs traded by larger institutions and seasoned investors.   These are the same currency pairs that the Forex Market buys and sells as well. What is so hot about Micro Currency Futures?  With these, you can be trading futures by opening an account with just $500 and start investing.  Where else can you start trading with just $500? One major problem for novice traders is going from the simulator to trading live with cash.  Someone who barely understands technical analysis is suddenly required to have at least $2500, and then jump right in, often head first, risking their portfolio right away.  Learning technical analysis is not simple task, that is hurdle number 1.  But then going from simulator to live cash is hurdle number 2. Now, at last, investors can trade 1 contract with $100.  Just $100.  This has never happened before.   They can get the feel of what it is like to trade with real cash before they invest in the standard contracts. What is nice about Micro Currency Futures is that they are cash settled.  With futures trading, especially the commodities, there is the fear that you will be left at the end of the contract holding bushels of wheat or rice or worse, pork bellies, when contract settlement comes due.  But with Micro Currency Futures, settlement is all cash. You won't even be required to take British Pounds, Japanese Yen, or whatever currency you were trading. The Micro Currency Futures buy and sell on the same desktop trading applications already available.  For example, Ninjatrader is all set up for these types of contracts.  And several of the futures brokerages are all ready to open accounts for them as well.   If you were thinking of looking into trading, whether during the day or after work and becoming a night trader, this gives you a chance to get started.  With a little education on technical analysis, you might quickly graduate from the Micro's to the regular Currency Futures and make a nice living.  But to start, Micro Currency Futures can get you rolling. About the Author: Barbara Cohen CIO, Shadowtraders, and professional day trader, specializes in teaching students how they can be trading futures with their own trading system and trading strategies. Ms. Cohen has helped hundreds of traders achieve their goals trading. Find out if trading futures is for you by attending one of Ms. Cohen's Free Webinars. Check out my Futures Trading Articles. For more information, call 866-617-2037 today.