E Minis

Written by Michael Federico
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Trading e-minis has become very popular over the past few years. Mini S&P 500, Mini Dow, Mini NASDAQ, and e-mini trading on the Forex are all generally geared toward the individual investor because it allows a person to buy contracts that are only a fraction of the size of standard contracts. Minis are still tracked with the most popular stock index benchmarks in the world, so a person still has full market exposure, but the risk is not as great.

Minis are extremely liquid, and they give an investor the opportunity to make substantial profits without making large initial investments. While mini trading is handled through the Chicago Mercantile Exchange, it is carried out electronically or over the phone. This means that minis can be purchased and sold from anywhere around the world at almost anytime throughout the day.

Getting Started in E-Minis

Not every online trading service offers e-mini trading. More sites have begun to add the option, but there are still only a few that have been doing it for an extended period of time. Sites that have been in the mini business for a while usually have the tools set up to give their clients the best opportunity to make money through e-minis.

Before one starts trading, he should be fully aware of the differences between trading stocks and trading mini futures. He needs to understand the risks and all of his options. There is a lot of expert research available on the subject of e-minis. There are also courses that one can take online to familiarize himself with the process. However, it is often best for a first-time mini trader to talk to a professional about any questions or concerns he might have.


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