Page 7 - Futures Money Machine-Study Session #2

Futures Exchanges

E-minis are electronically traded futures contracts that represent a percentage of a corresponding standard
futures contract. E-minis are not pit-trading! The e-minis make ideal beginner trading instruments for a

variety of reasons, including round-the-clock trading, low margin rates, volatility and liquidity, smaller trading

accounts, more contacts can be purchased then the full size contracts which means the trader can split exits in
smaller increments as well.

E-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, also known as the “S&P E-mini”. 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.