Page 29 - Futures Money Machine-Study Session #3

Understanding Futures

Full Size Contract or E-Mini …

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 and the New York Board of
Trade. E-mini contracts were first launched in 1997 for the S&P 500 index with great success, and are now

available on a wide range of stock market indexes, commodities and currencies.

Some 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.