Emini Futures Tutorial
Entering the trading field may be similar to enterig a war zone. Without the proper tools, scoutig devices, ammunition and strategy your chances of success are small. In order to make it work, you’ll need to get the odds on your side.
I learn more when I write down what I’m learning, so I decided to write this article as a way for me to learn and understand more about how the markets work and to learn everything there is concerning trading.
Why trade Emini Futures?
- Easy Access
- Virtually 24-hour market
- One central marketplace
- Highly liquid
- Tight bid/ask spreads
- Leverage
- No margin interest charged
- No inventory require for short position
- No short position interest charged
You can trade any benchmark index with Emini futures:
- Emini S&P 500: Tracks large cap US stocks
- Emini NASDAQ 100: Tracks technology, telecom and biotech issues
- Emini S&P Midcap 400: Tracks mid-size US companies
- Emini Russell 200: Tracks small-cap US stocks
- Emini Russell 1000: Tracks 1000 largest cap companies in the US based on total market cap.
How are Emini S&P 500 profits and losses calculated?
Emini S&P 500 futures contract is traded in .25 increments. Each increment is called a “tick”. Each tick is worth $12.50, so a 1 full point move would be worth $50.
To make an example, a move from 1220 to 1221 would go like this: 1220 to 1220.25($12.50 profit), 1220.25 to 1220.50(another $12.50 profit more), 1220.50. to 1220.75(another $12.50 profit more), and the final move from 1220.75 to 1221(another $12.50 profit).
The most popular forms of active trading and day trading are:
- Scalping: A form of day trading that has the shortest holding time frame. A scaler is trying to profit from very small movements in the index value such as 1 point or even 0.5 poin
- Swing: A form of day trading or shor term trading in which you are waiting for a price to hit certain support or resistance level and reverse it’s trend.
- Breakout: A form of day trading in which you are waiting for a price to pass through certain support or resistance level as a clear sign of continuation of that trend.
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