E-Mini futures trading was introduced in 1997 on the Chicago Mercantile Exchange as a means of encouraging more non-professional traders to take part in trading futures without having to make the huge commitments that other forms of trading require. E-Mini futures trading allows investors to buy an electronic futures contract which is actually a fraction of a normal sized full futures contract. There are a number of advantages to this intelligent system of trading and after assessing the advantages, you may turn to E-mini futures trading and start making a profit.
One of the main benefits to E-Mini futures trading is the much lower margin requirements which arise as a result of buying a smaller portion of a contract. Full size contracts often require huge margins but the smaller more affordable margins made available with E-Mini encourage lone investors to play the market. The contracts are much more affordable and the low margin means traders do not have to have as much capital behind them to invest. Thus, one of the main advantages to E-Mini futures trading is the fact that market is open to all traders who may only have a small amount of money to invest.
Another of the reasons investors might consider choosing E-mini futures trading is because trading can be performed over 23 hours a day. Unlike commodities, for example, these trading hours allow investors to trader E-Mini futures at almost any time of the day regardless of where they are located. A characteristic of E-Mini futures trading is high liquidity and this is especially helpful to traders. High liquidity implies that a large volume of the security of being traded and this is ideal when day trading because the security can be bought and sold very quickly. High liquidity also makes the bid and ask price of a security much lower and as a result this reducers the costs placed on the trader.
Traders also choose to pursue E-Mini futures trading because the market is volatile. Once again this is ideal for day trading because a volatile market implies that the price will fluctuate quite a lot during the course of a day. This means that when taking part in E-Mini futures trading there will be plenty of opportunities for traders to enter and exit the market because the price will be moving up and down frequently.
Plenty of traders choose to trade E-Mini because of the reasons listed above but also because E-Mini possesses a number of advantages over other potential trading options. For example when compared to bonds, E-mini is much more favorable because bonds are not very volatile and therefore there are few opportunities presented to enter and exit the market. Also if a trader wants to pursue stock trading they might find it difficult to choose the right stocks and to keep in touch with the speculation.
E-Mini futures trading, on the other hand, presents a number of advantages over other forms of trading and this is why many traders are opting to trade E-Mini.