E-mini stands for electronic mini. Mini contracts.
The evolution of the futures markets went from having physical products such as: soy, sugar, crude oil, etc… where you buy actual full contracts and usually get the product once the contract expires. With day trading, even if you were to trade these particular goods, chances are you will be long out of the contract to ever have it delivered to your door.
Nowadays the futures markets are opened up to indexes such as the S&P 500, Dow Jones, Russell 2000, Precious Metals, Currencies, etc… These trading instruments are E-minis. You can buy mini contracts of these. Since you’re not buying any physical objects what we are buying is the virtual permission to hold the index in order to sell it to someone else at a different price – ideally with a profit.
ES futures are strictly speculative. But this really has no real concern for us. All we know is we trade it.
Marina 'The Trader Chick' Villatoro