E-Mini In Futures Trading

Futures contracts allow traders to sell and buy assets in the future (as the name implies) at a set rate. E-Minis, originally introduced in 1997 by the Chicago Mercantile Exchange, are smaller than standard futures contracts.

This means that people can get into Emini futures trading with a fraction of the funds that they’d need to trade standard futures. Check out our xBrat VWAP Predator designed for day trading emini futures HERE.

What Is An E-Mini?

As we mentioned earlier, e-minis (or electronically-traded futures) allow parties to trade commodities and currencies at a set rate in the future.

Wondering “how much is one e mini futures contract?”

Well, it depends. In comparison to full-sized futures, e-minis are one-fifth in value. So the value of an e-mini for a given asset will depend on the value of the asset itself and that of a standard futures contract; at minimum, it can be $12.50 per contract.

You can track price changes easily via an e mini S&P 500 futures chart.

E-Minis vs. Full-Sized Futures

There is no difference between full-sized futures and e-minis except that the latter is one-fifth in value. You trade e-minis pretty much the same way as full-sized futures, but since you need comparatively less money to trade, Eminis are more lucrative.

Surprisingly, e-minis overshadow full-sized futures in trade volume!

E-Mini S&P 500 Futures Contract Specifications

Before you move on to “how to trade e mini futures example,” why not understand some specifications of what we have at hand? In today’s world, you’re only one sign-up away from a broker who lets you trade stuff.

Let’s see what we’re trading:

  • The Chicago Mercantile Exchange introduced E-Minis in September 1997
  • You can trade E-Minis on the CME
  • Usually, the contract is $50 times the S&P 500 Index (i.e., 2,000 times $50 would be $10,000)
  • The lowest tick value is $12.50 for a contract
  • You can trade E-Minis pretty much throughout the week, excluding Saturdays (Sunday to Friday)
  • The best e mini S&P 500 futures trading hours are from 06:00 p.m. U.S. ET on day one to 05:00 p.m. U.S. ET the next
  • The trades are quarterly — March, June, September, and December are prime trading months

Advantages And Disadvantages Of E-Minis

E-Minis are a convenient and profitable means of trading that attract traders, both veterans and newbies. Before jumping into the game, let’s see it inside out — the pros and the cons:

Advantages

Firstly, e-minis are very affordable to trade with. Compared to standard futures contracts, they only cost you one-fifth of what you would have to invest otherwise. Also, since some brokers only require you to sign up for 10% or so of the total amount, you can start trading with as little as $500.

Another important pro is that you can trade freely minus one hour per day and one day per week. With today’s trading atmosphere and tools, you can track all relevant numbers live and make informed decisions based on smart Emini futures trading strategies.

You also have access to a ton of learning material and expert advice to help you make smart trading decisions. Just be aware that not all advice is good advice and what may work for someone (a routine or daily goals) may not work the same way for you.

Disadvantages

The biggest problem, however, is also the ease of trading. Most newbies dive into the trading business thinking of it like a video game. And who can blame them? After all, it’s graphs and numbers on a screen.

But you’re investing real money; the market is highly volatile, and it may just as easily punish you as reward you.

How Much Money Do You Need To Trade E-Mini Futures?

If you’re feeling all set to dive into the world of Emini futures trading, you’d be glad to know that it doesn’t take much upfront. Since E-Minis are valued at one-fifth of standard futures, and you only have to invest a fraction of the amount to start trading, you can jump straight into the action with as little as $500!

What’s keeping you? Happy trading!

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