DayTradeToWin - Beginner's Guide To Trading The E-Mini Futures Contracts

E-minis are an electronically trades futures contracts, which represent a group of value for this standard futures contract. Because e-minis round-the-clock businesses offer lower margin rates, instability, and liquidity, they are ideal trading tools for active traders. It becomes the most popular equity index futures contract in the world.

Beginner's Guide To Trading The E-Mini Futures Contracts

In the form of forwarding contract, e-mini is an agreement to buy or sell the cash value of the underlying index on the date after the underlying period. These contracts are on a fixed price by multiplying by futures prices. The E-mini S & P 500 has 50 times the contract size of the e-mini futures contract, which is $ 1,240 for the contract, the contract price is $ 62,000. E-mini contracts are available on a wide range of products, which include Indexing, Metals, and Commodities.

It is the futures contract that tracks the S & P 500 stock market index. It trades on the Chicago Mercantile Exchange (CME) through their Globex electronic trading platform. Using the ticker symbol ES, half hour per day, 5 days per day, is business. Every 1-digit move in the S & P 500 index is worth the US $ 50 for Amine Contract and the minimum step for the Emini Futures contract (or tick size) is 0.25 index numbers.

Advantages of E-mini S&P 500:

High Liquidity: This means that there are a lot of amounts and too much instability or "action". High volume means that you can enter and get out very quickly because there are many contracts available to take the other side of the business. When an electronic business first started in 1997, the average amount of e-mini contract business was 7,000 contracts per day. Today, it is not unusual to see 3-4 million contracts on a daily basis.

24-Hour Trading:  Globex almost connects the day session to non-stop trading availability. Extraordinary liquidity allows foreign markets to do business with this symbol, usually in the "overnight" session; the quantity is reduced, but at the time when European markets or Asian markets are active and very fast moves may still occur. On the contrary, with pre and post market trading, the stock market is open in less than 12 hours per day and cash is not always good during these sessions.

Tax Benefits:  Since futures trading of futures 60/40, American futures are the result of favorable turnover, which means that 60% of the profit is max. 15% (equivalent to long-term profit) and another40% of the ordinary income from Taxes are levied at a maximum rate of 35%. Secured positions held for less than 12 months are considered short-term benefits and applied to 35%. Of course, the tax status of all is different and consults a licensed accountant for their specific situation.

Advantages of Emini S&P 500 Futures

Diversification:  When stock index like E-mini S & P futures is done, your "News Risk" is spread across the market. If a report or rumor comes in a personal stock, then you should have a very little effect on its entire index.

Efficient Market:  A tight quote in the E-mini S & P 500 (EE) futures during normal market times is usually 1 tick or $ 12.50 per contract. With the current estimated contract value of approximately $ 50,000, it comes to.025% of contract value, which is spreading the best in the business world. To enter the market and exit, this dispersion should be considered in the cost of your admission (not contrary to commission). The spread of spreading, the business has to move forward in your favor, even to break it to you.

DayTradeToWin is educational trading company who provides the help in Atlas Line trading software as well as the ABC method of trading on the Emini SP and Euro Currency by using the best day-trading.

If you have any questions regarding to this topic, please feel free to reach out to us. We would love to help you find a solution.