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E-Mini Contracts

Using financial information to your advantage to trade E-mini contracts

By Felicia R. Blue
Trading E-mini contracts can be profitable and challenging. E-mini contracts futures may be scaled-down versions or microcosms of the index futures, but many individuals trade them every day. You can trade these contracts five days a week and 23.5 hours a day.

Individuals and hedge funds like to trade E-mini contracts because they can use the electronic trading platform, Globex, rather than using the open pit trading system which can cause delays. Trading E-mini contracts are inexpensive compared to trading the S&P futures, which can cost an approximate $23,000-plus margin per contract. To be a successful E-mini trader, you’ll need to do the following:
  1. Open an account with an E-mini trading broker.
  2. Use E-mini trading systems to create your buy and sell signals.
  3. Follow futures indexes as gauges for trading E-mini trading contracts.

 

Open an account with an E-mini trading services brokerage firm

Signing up with an E-mini trading services brokerage firm is not just about trading E-minis; you'll also want to take advantage of its other valuable resources. For example, if you're not ready to put up or risk your hard-earned money, the firm most likely offers simulated trading. That way, you can see how you would've fared if you traded the E-mini contracts. Another area you won't want to overlook is the firm's educational resources, including courses on E-mini trading basics, how to trade E-minis, and general E-mini contracts information.
Try: Go Futures specializes in futures. If you open an account with the E-mini trading services brokerage firm, you can trade E-minis futures contracts for a low fee. In addition, you can get live streaming E-mini quotes to help make your E-mini trading a success. PFGBEST.com offers several E-mini trading systems, such as BEST Direct and BEST Direct Pro Trader. Both Go Futures and PFGBEST.com offer simulated trading.

Use E-mini trading systems to set up your buy and sell signals

You need to develop reliable E-mini trading systems so that you can time your buy and sell signals. Because the futures markets can be volatile, you can't afford to be swayed by emotions. Using an E-mini trading software can help you be successful in trading E-minis.
Try: Eminitv.tv offers sophisticated E-mini trading systems, depending on your comfort zone and experience. In addition to studying charts on E-mini contracts, AbleSys Corporation explains E-mini trading basics.

Follow futures indexes as gauges for trading E-mini contracts

Since E-mini futures contracts are smaller versions of the big indexes (e.g., the S&P 500, NASDAQ-100 and Dow 30), this is one area you will not want to overlook. Indexes give you a broader picture of what the underlying securities are doing. They can also help you time your buy and sell of E-mini contracts.
Try: The NASDAQ-100 index shows all of the listed companies that make up this index. This index contains both domestic and international companies, and consists of various sectors, including biotechnology and telecommunications. The S&P 500 is known as a leading market indicator of the U.S. equities market. It has a long, stable history which dates back to 1923.

 

  • Make sure that you sign up with CME (Chicago Mercantile Exchange) to receive updates on CME E-Mini futures contracts. CME is the exchange that carries all of the E-Mini futures contracts.

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