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The next big thing in equities trading is here!

This is what the CME says about their new product the Micro E-mini futures for the 4 major US indexes. The S&P 500, the Dow, the Nasdaq and the Russell 2000.

https://www.cmegroup.com/cme-group-futures-exchange/micro-futures.html

From what I can tell, this new products are really great especially with all the high volatility we see right now in the US indexes.

While it was easy to trade in the indexes with a small account and little risk, it got almost impossible during the last few years. The average amount on a 15 minute bar in the Nasdaq is about $400 to $500 these days which makes it almost impossible to trade these markets with small accounts.

That's where I see a lot of potential with the Micros which are only 1/10 of the E-minis and a commission of about ½ of what we pay on the E-minis. 


Finally you can open a futures account with only $2k and trade the indexes and you do not have to move into the stock market. No! You can trade real futures now with very little money.

By the way, there are not only micros or minis in the indexes now, you can also find them in the Currencies or Gold or trade Mini-Sized products in Crude or even Wheat, Corn or Soybeans. 


In my opinion all the Micros and Mini-Sized products in the futures market are a big step forward for the retail trader, especially at the beginning of his or her trading career.

Good trading,
Andy Jordan

 

Comments 1

Chris Yenter on Friday, 18 March 2022 17:57

I agree. I have been using MES/MNQ for a while now and it really fits my style of trading as I like
to scale in and out of my scalp trades. It's much easier to scale with 10 MES vs 1 ES.
I think these may also be helpful for having a long term bull/bear position using ES/NQ and then being
able to hedge that shorter term using MES/MNQ.

Looking forward to trying some of the other contracts for metals, ag, etc.

I agree. I have been using MES/MNQ for a while now and it really fits my style of trading as I like to scale in and out of my scalp trades. It's much easier to scale with 10 MES vs 1 ES. I think these may also be helpful for having a long term bull/bear position using ES/NQ and then being able to hedge that shorter term using MES/MNQ. Looking forward to trying some of the other contracts for metals, ag, etc.
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Saturday, 20 April 2024

Derivative transactions, including futures, are complex and carry a high degree of risk. They are intended for sophisticated investors and are not suitable for everyone. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results, and all of which can adversely affect actual trading results. For more information, see the Risk Disclosure Statement for Futures and Options.