| Trading
the E-mini Nasdaq 100 gives the trader numerous opportunities
in the market, especially in the technology sector. Below is a brief explanation of the
E-mini, which will give you a starting point to learning
its benefits as a trading vehicle. For further
learning, be sure to look at the Educational
Books and Traders' Resources
recommended by our staff. |
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- What
is It?
[top]
- E-Mini
Nasdaq 100contracts are smaller electronically traded
versions of the NASDAQ 100 stock index. They are 1/5
the size of the larger institutional contracts. E-Minis
are traded electronically on your PC.
Why Trade Them? [top]
-
- Volatility
creates opportunity to earn much more with lower
account balances
- Broad
market exposure for low cost
- You
can hedge against your own portfolio
- You
can be profitable regardless of market direction
The Case for Trading Futures: The Traders Have Voted!
[top]
- In
a little over 4 years, since inception, average daily
volume of the E-mini S&P 500 has grown from 11,000
contracts to nearly 240,000 contracts and the E-mini
Nasdaq 100 has experienced similar growth patterns.
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-
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Trading Advantages [top]
- Ease
of use versus stocks:
- Totally
electronic platform with fast, efficient fills and
virtually 24-hour trading
- “Round
Trip” versus in-and-out commission
- Monitoring
a few key indexes vs. dozens of stocks thus
eliminating traditional stock picking and
associated risks such as:
- Pre-announcements
- and
now…accounting minefields
- Excellent
profit potential
Ease
of use versus options:
- Rocket
Science Factor
Options traders can call market correctly and
still lose money because they must juggle 4 items:
- underlying
price
- strike
price
- volatility
- time
decay
- Futures
traders care about only 2 things:
- an
advancing market or
- a
declining market.
- Futures
have more constant order flow and are usually much
more friendly regarding bid/offer spreads.
E-Mini Contract Specifications [top]
| |
E-mini
S&P 500 |
E-mini
Nasdaq-100 |
E-mini
Russell 2000 |
E-mini
S&P Mid Cap 400 |
| Ticker
Symbol |
ES |
NA |
ER2 |
EMD |
| Contract
Size |
$50
x E-mini S&P Futures price
$55,000 |
20
x E-mini Nasdaq-100 Futures price
$30,000 |
$100
x E-mini Russell 2000 Futures price
$49,000 |
$100
x E-mini Mid Cap 400 Futures price
$55,000 |
| Min.
Price Fluctuation (Tick) |
.25
futures index points = $12.50 |
.50
futures index points = $10.00 |
.10
futures index points = $10.00 |
.10
futures index points = $10.00 |
| Trading
Hours |
Virtually
24 Hours |
Virtually
24 Hours |
Virtually
24 Hours |
Virtually
24 Hours |
| Contract
Months* |
H,
M, U, Z |
H,
M, U, Z |
H,
M, U, Z |
H,
M, U, Z |
| Last
Day of Trading |
8:30AM
3rd Friday of contract month |
8:30AM
3rd Friday of contract month |
8:30AM
3rd Friday of contract month |
8:30AM
3rd Friday of contract month |
| Performance
Bond Initial ** |
$3,938 |
$4,125 |
$4,350 |
$3,125 |
| Performance
Bond Maint. |
$3,150 |
$3,300 |
$3,480 |
$2,500 |
- *H=March,
M=June, U=Sept, Z=Dec
** CME minimum performance bond margins as of 1/31/02
SUBJECT TO CHANGE
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What is 1 point of the E-mini NASDAQ 100 worth? [top] - $20
per point per contract
For example: If the Nasdaq100 Index value is at
1800 and goes up 5 points to 1805 the difference is 5
points which equals $100.
$20 x 5 = $100 profit or loss per contract.
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Source,;
Exchange Traded Funds & Emini Stock Index Futures
By David Lerman
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