Emini Trading Explained

Emini trading or emini futures trading is another way of making money trading US indexes. If you can't trade via Spread betting or Contract For Difference (CFD) rather than going through the hassle of scanning the right stocks to trade, you can trade these emini futures and make a quick profit by shorting and going long in the major US indexes without the financial restriction imposed by SEC and any other financial authorities.

What Are Emin Futures ?

The emini futures contracts are tied to the major US stock indexes. The major indexes include the S&P 500, NASDAQ 100, Russell 1000 and 2000 and the DOW . They trade in calendar cycles with expiration months quarterly. Contract Months: March, June, September and December. The minimum fluctuation known as tick which varies with each index.

Emini trading is getting popular. Emin futures trading are now widely traded as an alternative way to stock index options or electronic traded funds.

Let's explain a few emini futures and then I will show you how we can make a quick profit by following some emini trading strategies.

Emini S & P 500- CME E-mini S&P 500 futures contracts are based on the same leading CME S&P 500 index as the most actively traded stock index contract in the world , but are a fraction of the size and have the following:

  • Ticker Symbol: ES
  • Exchange: Chicago Mercantile Exchange
  • Value of 1 Tick: $12.50
  • Ticks per Point: 4

The tick value is .25 index points, or $12.50 per contract. This means that if the futures contract moves the minimum price increment (one tick), say, from 1400.00 to 1400.25, a long (buying) position would be credited $12.50; a short (selling) position would be debited $12.50.

Also, a one-point move (four ticks) is $50.00 per contract ($12.50 times four ticks). This means that if a trader enters a long position at 1400.00 and covers the position at 1410.00, $500 is credited to his account. Conversely, if the E-mini declines from 1400.00 to 1390.00, and the trader had taken a long position, he would have a $500 loss debited to his account.

Emini Nasdaq 100 - The e-mini NASDAQ 100 is based on the NASDAQ 100 index of the largest 100 NASDAQ traded non financial stocks and have the following :
  • Ticker Symbol: NQ
  • Exchange: Chicago Mercantile Exchange
  • Value of 1 Tick: $5.00
  • Ticks per Point: 4

Emini Russell 2000 - The e-mini Russell 2000 based on the Russell 2000 index of smaller cap stocks. This is the latest edition to the CME's e-mini stock index complex and has become one of its fastest growing components and have the following:

  • Ticker Symbol: ER (AB in eSignal)
  • Exchange: Chicago Mercantile Exchange
  • Value of 1 Tick: $10.00
  • Ticks per Point: 10

Emini Dow- The Mini DOW from the Chicago Board of trade (CBOT). The DJIA is a price-weighted index of thirty (30) of the largest, most liquid U.S. stocks and have the following:

  • Ticker Symbol: YM
  • Exchange: Chicago Board of Trade
  • Value of 1 Tick: $5.00
  • Ticks per Point: 1

Emini Trading Time- The emini futures trade virtually 24/7, these indexes are tied to the US stock markets which only trade from 09:30 AM until 04:00PM est, but as these are emini futures, just like the major future indexes, the volume, hence liquidity are very light if trading after hour/overnight.

Emini Trading Brokers

A good broker will charge you $6.00 or less per round turn. A round turn is both the entry and exit of a single contract. Most of the traditional brokers like Ameritrade, Interactive Brokers and Tradestation Securities can offer these services. Most brokers require minimum $500 to $1000 deposit per contract. Some smaller brokers like Proemini.com and emini.com can offer some cheaper commissions and lower margins.

Emini Trading Strategies

Short Term Swing Trading Forecast - Besides using pivot point trading, delta trading, or elliott wave I have found an emini trading futures service provider that can forecast emini futures directions, amplitude which you can trade for a few days or day trade.

Using what they called G line, a chart for next week's position is drawn. You can then use this prediction for you emini trading.

Click to play the following emini futures trading forecast video that explains how this works and what they offer.

Just like delta trading and market matrix, you can make profit by trading in the directions of the predicted trend. If you are interested or want to profit by following this emini trading futures forecast, then click on this link

. They offer 2 weeks trial as well.

Day Trading Emini Futures Strategies.

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