Page 13 - Futures Money Machine-Study Session #2

Futures Exchanges

Thus, 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. As of April, 2011, CME lists 44
unique E-mini contracts, of which approximately 10 have average daily trading volumes of over 1,000

contracts.

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.