E Mini Trading

Written by Michael Federico
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Trading e-mini futures allows a person to get accustomed to the futures market without taking on as much of the risk that is involved with standard futures trading. Mini contracts use the same index benchmarks that regular contracts use. However, a mini contract is only a fraction of the size, so if losses are incurred, they will not be as great.

E-minis can be traded all over the world and pretty much around-the-clock. Transactions are handled electronically or with a commodities broker on the phone. Trading of the Mini S&P 500, Mini NASDAQ, and Mini Dow is handled by the Chicago Mercantile Exchange. Each year sees a consistent growth in the number of people trading e-minis. This is because there is excellent liquidity and constant availability. Also, the contracts are small but they have the potential to make a lot of money. This has made minis appealing to serious individual investors who cannot afford to make huge purchases.

How to Be Successful in E-Mini Trading

The number of courses and books dedicated to e-mini trading is staggering. Everyone from seasoned financial advisors to retirees who have made it big have created simple five or 10-step methods to conquering the mini market. Some of these people truly do have an understanding of e-mini trading. However, a person should be wary whenever someone guarantees success. Even though there is not as much money involved with mini contracts, there still is risk involved, and anyone who overlooks that is not telling the whole story.

Before trading minis, a person should find an online broker that offers information and advice about the process. Most sites will not charge members to gather this type of information. It is also a good idea for a person to contact a professional in the financial industry either through an online service or a brokerage firm.


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