EMini Trading – E-mini S&P 500, E-mini NASDAQ and Emini Dow Jones

What is emini trading?

Emini trading is kind of a stock market future trading which is more suitable for the smaller investors. There are many types of emini trading including Emini S&P 500, Emini NASDAQ 100 and E-Mini Dow Jones. Out of these the Emini S&P 500 is most popular and most widely used among traders. This is because the S&P 500 index represents more companies and a broader index as compared to Dow Jones and NASDAQ.

Emini are called contracts for smaller investors because the size of a emini trade is almost 1/5th of the regular contract which makes it more accessible to the smaller investor. Even then, small here means around $60,000 which is comparatively smaller than $300,000 which you will need for regular future contracts.

The E-mini is traded electronically, and you can do it 24 hours a day. Therefore, there are a lot of traders who do this as day trading activity. What that means is that these traders do multiple trades in a day. They try to buy on small dips and then sell when there is even a small increase in price. This makes emini popular among day traders but this is a very risky strategy to make money in stock market.

E-mini S&P 500 – E-Mini S&P is often abbreviated to a general term “E-mini” and designated by the commodity ticker symbol ES. The E-mini S&P 500 is very popular it has provided excellent results over the period of time. Volatility is also high enough to make it possible for investors to trade profitably.

E-mini NASDAQ 100 – This product was launched following the success of Emini S&P 500 product. It is associated with ticker symbol NQ. As the name suggests, this is based on the NASDAQ index which is a key benchmark of technology, telecom and biotechnology issues.

E-mini DOW JONES – The ticker symbol for this product is YM. The E-mini Dow Jones future contract is especially interesting for the trader with a smaller account, because of the smaller margin requirement.

You can contact your broker or click on the link to the Chicago Mercantile Exchange (CME-GLOBEX) to get up to date information on margin, trading hours etc for emini trading. It is strongly suggested you start with the QQQQ trading before trying the E-mini S&P 500, E-mini NASDAQ 100 or Emini Dow Jones unless you’re an experienced trader and/or have traded futures before.

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