Emini Futures Trading

E-minis are futures contracts that represent a fraction of the value of standard futures. They are traded primarily on the Chicago Mercantile Exchange’s Globex electronic trading platform (CME) and the New York Board of Trade (NYBOT).

E-mini contracts were first launched in 1997 for the S&P 500 index alone. They have been spectacularly successful however and are now available on a wide range of stock market indexes, commodities and currencies. Currently, CME lists 44 unique E-mini contracts, of which approximately 10 have average daily trading volumes of over 5,000 contracts.

The S&P emini regularly trades over 2 million contracts per day. With this sort of volume and at $50 per point profit, there are many thousands of traders that make over $1000 a day by trading multiple contracts and making just 2-3 points per day profit.

Most E-mini contracts provide trading advantages, including high liquidity (and therefore tight spread), greater affordability for individual investors due to lower margin requirements than the full-size contracts, and round-the-clock trading 23.25 hours a day from Sunday afternoon to Friday afternoon. Under U.S. tax law, E-minis may qualify as 1256 Contracts, and benefit from several tax advantages as well.

On a cautionary note, the risk of loss is also amplified by the higher leverage. This is why it is essential to have a highly effective trading system such as EnigmaSignal. Strategies that rely on human intervention are simply no longer up to the job of trading emini. The market moves too fast. It is too stressful. That is why algo trading works. It is fast, efficient and without emotion.

Your biggest risk trading isn’t a ruthless market, but the people and information you expose yourself to. At EnigmaSignal we do not say trading the emini futures is easy. We know it is tough. We tell you it is tough. But we also know there is a sensible route through to success.