Learn to trade Micro E-mini stock index futures

Posted on 06/10/2019

While there are a plethora of advantages to trading futures contracts relative to stock market ETFs such as favorable tax treatment, easier tax reporting, around the clock market access, ease of shorting the market, and trading on margin without the burden of paying interest charges to a brokerage house. There is one large bright pink elephant in the room; leverage and the associated risk (large swings in position profit and loss).

The Chicago Mercantile Exchange Group (CME) has recognized the need for a stepping stone for those interested in the convenience of futures trading but not interested in the big risks that come with it. Accordingly, the CME is launching a suite of Micro E-mini futures contracts for the S&P 500, NASDAQ 100, Dow, and Russell 2000. Each of these products will be 1/10th the size of the traditional E-mini bringing the futures markets to retail traders of all sizes, types, and risk tolerances.

Find out how these smaller products might be candidates for swing trading, position trading, and even scale trading.