E Mini Contracts

Written by Erin Jones
Bookmark and Share

E-mini contracts are growing exponentially in popularity with investors. The futures contract, which is traded on the Chicago Mercantile Exchange, is a way for investors to leverage their monetary rewards from investing in the stock markets. The most popular type of E-mini is the S&P 500 E-mini futures contract.


All about E-mini Contracts

In addition to the leverage, many investors like e-minis because they are inexpensive and because they can be traded 24 hours a day. This means that investors who have full-time jobs can still come home at the end of the day and manage their own investments. E-mini contracts are leveraged future investments that can be tied to many of the popular indexes, including several of the Russell indexes.

If you're unclear about leverage and margin, here's a brief synopsis. One E-mini futures contract is worth approximately $55,000, depending on where the S&P is trading. An investor, however, only has to put up the margin requirement to buy the entire contract, meaning that roughly $4,000 will buy you a $55,000 contract!

When the market goes up, you're leveraged about 50 times on the upside. This is great news! This is also the reason, however, that you need to watch your investment closely on the downside in case the market moves against you. With quality trading software and professional guidance from futures experts, you can get out in time in case of a market mishap. To learn more about E-minis, it's a good idea to consult with a professional investment program or academy. There are many E-mini trading courses located online for investors of all experience levels.



Bookmark and Share