Esponel (es)
Türkçe (tr)
Russian (ru)
한국인 (kr)
Italiano (it)
हिंदी (in)
عربي (ar)
Français (fr)
Deutsch (de)
日本 (jp)
中国人 (cn)
CandleFocus Glossary Editor
E-minis are a type of electronically traded futures contract that are a fraction of the value of corresponding standard futures contracts. By providing contracts with a smaller notional value, investors can trade a broad range of assets, such as indexes, commodities, and currencies in a cost-efficient way. The concept was first introduced in 1997 through the launch of E-mini S&P 500 futures on the Chicago Mercantile Exchange. Subsequently, the contract has grown in popularity, with more than a trillion dollars of trading volume annually.
Futures contracts are used by investors to speculate on the price movements of the underlying asset or to hedge against risk. In this case, E-minis provide traders with an efficient and cost-effective way to access the futures market. The notional value of an E-mini contract is often lower than that of a standard futures contract, allowing traders to access markets with less capital than would otherwise be necessary with standard contracts. Furthermore, E-minis tend to trade with lower margins and higher liquidity than standard contracts, which further reduces trading costs and improves market access.
Due to the smaller contract size of E-minis, traders are able to effectively manage risk and capitalize on price movement without taking on excessive levels of exposure. However, this type of trading can be quite risky and requires a deep understanding of the underlying markets. E-mini contracts are often highly volatile and may experience extreme price swings in short periods of time, so traders should always do their research before entering into any trades.
In conclusion, E-minis are electronic futures contracts that are a fraction of the value of corresponding standard futures contracts. These contracts are typically available on the Chicago Mercantile Exchange and allow traders to gain access to a range of markets in a cost-efficient way. While E-minis provide an ideal way to speculate on the markets, they are inherently risky and require a deep understanding of the underlying assets.
Futures contracts are used by investors to speculate on the price movements of the underlying asset or to hedge against risk. In this case, E-minis provide traders with an efficient and cost-effective way to access the futures market. The notional value of an E-mini contract is often lower than that of a standard futures contract, allowing traders to access markets with less capital than would otherwise be necessary with standard contracts. Furthermore, E-minis tend to trade with lower margins and higher liquidity than standard contracts, which further reduces trading costs and improves market access.
Due to the smaller contract size of E-minis, traders are able to effectively manage risk and capitalize on price movement without taking on excessive levels of exposure. However, this type of trading can be quite risky and requires a deep understanding of the underlying markets. E-mini contracts are often highly volatile and may experience extreme price swings in short periods of time, so traders should always do their research before entering into any trades.
In conclusion, E-minis are electronic futures contracts that are a fraction of the value of corresponding standard futures contracts. These contracts are typically available on the Chicago Mercantile Exchange and allow traders to gain access to a range of markets in a cost-efficient way. While E-minis provide an ideal way to speculate on the markets, they are inherently risky and require a deep understanding of the underlying assets.