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Emini Futures Contract Trading Made Easy

What are E-mini futures? Futures Contract Trading

Today I’m writing about Emini Futures, going to make this easy for everyone to read. Everyone loves e mini futures and on the internet, you can find a lot of information about it. From e mini futures training to E-mini futures trading room.

The first thing to know is where e mini futures trading contract comes from. I remember talking with some friends about how the price of the S&P 500 becomes so high, so high!! That a regular trader couldn’t buy it anymore usually there’s a split, but in this case, the e-mini S&P 500 was born. And that happened in the ’97! The e-mini allowed more investors to join the game and made futures trading more accessible. There’s a lot of people out there that claim they are trading e-mini futures for a living, and yeah, that’s possible. I say that trading futures are perfect for beginners.

People usually start their trading journey with FOREX, and that’s ok. But, the forex market is more liquid and it’s more volatile. The e-mini futures trading is less volatile, giving you more time to react. So, let’s start with what is e mini futures. If you want to start trading, I recommend you set up your best e-mini trading system. Keep reading to know more.

Related Read: Advantages Of Trading Futures

Emini Futures Contract Trading Strategy

What are emini futures?

The definition of something is the first thing we look for when we don’t know something. I already wrote a post about what is e mini futures but here’s a brief definition:

E-mini Futures means that’s an electronically traded futures contract. Those in their majority are launched and traded on the CME (Chicago Mercantile Exchange).

How emini futures work?

You must be thinking now how emini futures work and that’s pretty simple. As I said before, the price of S&P 500 got too high for anyone to buy it and that’s where the e mini futures contract was born.

This means the e-mini future is a fraction of the price of the original assets. For example, if the S&P 500 is trading for 1200 then the e-mini S&P 500 futures contract will be valued like this: $50 x 1000 = $50.000. An e-mini s&p 500 charts do his moves in ticks, which means price increments of 0.25 and the price will raise for $12.50.

That’s how much is e mini futures contract is priced. Every single time the S&P 500 price fluctuates, the same will happen with the s&p e-mini futures price.

Related Read: Understanding Contract Roll Over Day for ES Minis

What are micro emini futures?

A few years ago, in 2019 exactly. The Chicago Mercantil Exchange launched the micro emini futures. As you can imagine, they are a fraction of the original e-mini contract.

The CME launched the micro e mini futures in 4 big US stock indices. The popular S&P 500, the NASDAQ-100, DJIA, and RUSSELL 2000.

This gave investors a new way to trade the futures market. Since their price is significantly lower. They are the same but cheaper. The micro e-mini is 1/10th the size of the bigger e-mini.

How do the micro e-mini futures work?

The same as the normal e mini. Let’s take the same S&P example but instead of the $50 multiplier values change this time. The micro e-mini is only $5, the minimum tick remains the same 0.25 and the dollar value per tick is $1.25.

When do e mini futures open?

Both micro and e mini futures works the same, fluctuate together, and open at the same time. From Sunday to Friday at 5 p.m CT to 4 p.m working almost 24H.

Recommended Read: Similarities Between Forward And Futures Contracts

Emini price action: Emini Futures Contract Trading.

How to buy emini futures?

Don’t get me wrong I asked this question myself too, but it’s really straightforward. To buy or enter any futures position, the investor needs to put up a margin requirement. It’ll depend on the broker.

How to trade emini futures?

This’s the $1million dollar question for many obvious reasons. There’s a lot of people looking for examples to trade e mini futures and there’s a lot of info around the internet.

If you’re a total beginner I recommend you to start here.

But all you need to trade e mini futures and micro e-mini futures is knowledge. A broker account and good technical analysis.

What happens when futures expire?

The contracts for futures have an expiration date and when you’re trading you need to be aware of it. This is something you must include in your strategy since an end date can affect the outcome of a trade.

There is two-term that comes into play here. Contract Expiration and Contract Roll Over.

A Contract Expiration means the end of a contract, it’s the last day an investor can trade that contract. When do emini futures expires? This can happen on the 3rd Friday of the expiration month, but this depends on the contract.

You’ll have three options when it comes to this, the first one is the most common. Offset the positions to close out the trade, rollover the contract, and change the expiration date from the current to the next month. Or leave it as it’s and let the futures contract expire.

Remember to always check your e mini futures expiration dates. What time do futures expire? for example, the e-mini NASDAQ contract expires at 9:30 a.m. EST.

Related Post: Futures Trading Risk Management Tools

Where can I trade emini futures?

Is a normal thing that you start looking for where to trade e-mini futures and there are a ton of trading platforms. For example, TD Ameritrade.

Conclusion on E mini Futures Contract Trading

As I said at the beginning, the futures market contract is the best place for beginners to start trading. And if you’re a regular trader, you should be adding it to your trading portfolio.

Stop hesitating and start day trading and making a profit today! The price for a micro e mini is $5 with 0.25 tick and $1.25 value per tick you can make 5$ every time the futures chart moves!.