Benefits of E-mini Trading | RJO Futures (2024)

FAQs

Benefits of E-mini Trading | RJO Futures? ›

With E-mini S&P 500 futures you can trade nearly 24 hours a day during the trading week and take advantage of potential trading opportunities regardless of market direction. E-mini S&P 500 futures also provide the ability to trade with greater leverage and can allow a more efficient use of trading capital.

With E-mini S&P 500 futures you can trade nearly 24 hours a day during the trading week and take advantage of potential trading opportunities regardless of market direction. E-mini S&P 500 futures also provide the ability to trade with greater leverage and can allow a more efficient use of trading capital.

Not accounting for commissions and slippage, these strategic frameworks show that it is theoretically possible to make a living trading E-mini futures. Given a solid success rate and positive risk versus reward scenario, long-run profitability is attainable.

The E-mini moves in 0.25-point increments, and each one of those increments equates to $12.50 on one contract.

It is also referred to as e-mini because it is a part or a fraction of the total value of an underlying standard futures contract, hence the name e-“mini.” Hence, when a standard futures contract is broken down into various smaller parts, the fractional values of the total value of a standard futures contract is an e- ...

There is no legal minimum on what balance you must maintain to day trade futures, although you must have enough in the account to cover all day trading margins and fluctuations which result from your positions. These can vary by broker however some require as little as $500 to open an account.

How Many E-mini Contracts Can I Trade? Theoretically, you can trade as many E-mini contracts as your account balance allows you. Because E-mini contracts are traded on margin ($500/contract) you can trade more contracts with less money.

Trading futures for a living is a compelling idea — but to do it successfully, you'll need sufficient startup capital and a well-designed trading plan. You'll also need a trading platform that offers fast, reliable access and the right technological tools.

Trading with the Free Account Plan has an associated commission rate of $0.35 per contract, per side for the Micro-Emini Futures. Please review the all-in-rates table for a breakdown of total fees per product for each Tradovate Account Plan.

A pattern day trader who executes four or more round turns in a single security within a week is required to maintain a minimum equity of $25,000 in their brokerage account. But a futures trader is not required to meet this minimum account size.

What are the margin requirements for E-mini? ›

Margins. The initial margin requirement on E-mini S&P 500 futures contracts is $5,060 with a maintenance margin of $4,600. The overnight initial minimum is another thing to take into consideration when trading E-minis. This is the amount of money needed to hold your position in the market after close.

On-screen text: Disclosure: Futures trading involves substantial risk and is not suitable for all investors, and you can experience a significant loss of funds, or you may lose more than the funds you invested.

For example, where the regular E-mini S&P 500 futures contract represents $50 times the price of the S&P 500 Index, the Micro E-mini S&P 500 represents $5 times the price of the S&P 500 Index.

Cash Settlement

Many financial futures contracts, such as the popular E-mini contracts, are cash settled upon expiration. This means on the last day of trading, the value of the contract is marked to market and the trader's account is debited or credited depending on whether there is a profit or loss.

It's easy to get started with your futures trading account! Futures trading generally has a lower initial account opening capital requirement than stock trading. With stocks, there are day trading rules that require a trader to maintain minimum account balance of $25,000 which can be a high bar for new traders.

S&P 500 futures, either E-mini or micro E-mini futures, allow investors to hedge or speculate on the future movement of the S&P 500 Index. These futures contracts allow for immediate investment in the S&P 500 index with the benefits of a regulated exchange and liquidity.

Futures and Options

Capitalize on the around-the-clock liquidity of E-mini S&P 500 futures (ES), one of the most efficient and cost-effective ways to gain market exposure to the S&P 500 Index, a key indicator of the stock market's health. With ES futures, you can take positions on S&P 500 performance electronically.

The contract size for futures refers to the value of the contract based on the price of the underlying futures contract times a contract-specific multiplier. The contract-specific multiplier of the E-mini S&P 500 is $50. Therefore, to get the contract size, it needs to be multiplied by the S&P 500 Index price.

Micro E-mini futures contract specifications. S&P 500 futures: 0.25, worth $1.25 per contract.