Page 30 - Futures Money Machine-Study Session #3
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Understanding Futures
Full Size Contract or E-Mini …
E-minis are electronically traded futures contracts that represent a percentage of a corresponding standard
futures contract. The e-minis make ideal beginner trading instruments for a variety of reasons, including
round-the-clock trading, low margin rates, volatility and liquidity.
Mini contracts are available on a range of products, including indexes, metals, forex and commodities.
Generally, however, investors and traders are referring to the e-mini stock index futures - and in particular, the
e-mini S&P 500 - when discussing "e-minis.“
The Chicago Mercantile Exchange (CME) introduced the first e-mini product on Sept. 9, 1997 when it launched
the e-mini S&P 500. This smaller cousin of the S&P 500 enabled more participation in the stock index futures
markets because it traded at one-fifth the size of the full-sized contract, making it much more affordable to
individual investors and traders.
