The best thing to happen to trading since the introduction of the computer. For new aspiring traders the Micro's are the low cost way to get your feet wet in trading. With many coming in under a Dollar a tick its the no brainer way to trade!
What are they?
The Micro E-mini futures products are a new line of miniature sized futures contracts offered by CME Group. They offer a cost-efficient way for traders to gain exposure to four major U.S. indexes:
S&P 500
NASDAQ-100
Down Jones
Russell 2000
These contracts are smaller versions of the CME Group’s popular stock index future contracts—the E-mini futures.
These four contracts are the exact same contracts that normally require traders to meet much larger margin requirements. Contact your broker for exact margin requirement details.
Benefits:
By offering the micro futures contracts, many more will be able to participate in the futures market that before would of not been able to due to being too costly. The Micros are geared toward the retail trader crowd, they offer great volume, flexible risk management and portfolio diversification.
Trading the Micros will allow yourself to come to grasp, how to handle and manage risks with a much smaller potential loss. Now all futures trading is subject to losing all if not more then your initial investment. By having a potentially smaller loss this allows traders to get there feet wet and begin the journey of learning how to deal with the risks of trading. Due to the fact the Micros follow the full sized contract it is a great way to test out systems and strategies before stepping up to a much more costly contract such as the ES/NQ/RTY or YM.
Cost:
The Micro E-mini Futures contracts feature a contract multiplier that is one tenth the size of the full sized futures contracts. For example the Micro E-mini Russell 2000 (M2k) is worth $5.00 per point where as the full sized Rusell 2000 (RTY) is worth $50.00 per point. Meaning if the Micro Russell 2000 moves up or down one point you are risking $5.00 per contract,
Contract specifications:
Below you are able to see the spec's of each contract.
Conclusion:
The micros are the best tool a new trader can use when starting out. They off a low cost highly liquid symbol that can be great for day trading or investing, best of both worlds! All the information in the price action course fits trading the Micros, same rules, same setups it is THE perfect way to test your hand at trading before diving straight in.
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