Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

Soultrader

Understanding Eminis: Beginner's Guide

Recommended Posts

Two popular e-mini contracts:

  • E-mini S&P 500
  • Symbol: ES
  • Exchange: Chicago Mercantile Exchange (CME)
  • Value of 1 Tick: 0.25 = $12.50
  • Value of contract: $50 x S&P price = Value
  • Trading Hours: 5:30 pm Sunday to 3:15pm Friday (Central Time)
  • Contract Months: March, June, September, December
  • Last Trading Day: Up to 8:30 am on the 3rd Friday of contract month
  • E-mini NASDAQ 100
  • Symbol: NQ
  • Exchange: Chicago Mercantile Exchange (CME)
  • Value of 1 Tick: 0.50 = $10.00
  • Value of contract: $20 x NASDAQ price = Value
  • Trading Hours: 5:30 pm Sunday to 3:15pm Friday (Central Time)
  • Contract Months: March, June, September, December
  • Last Trading Day: Up to 8:30 am on the 3rd Friday of contract month

While the big S&P 500 contracts are traded in the pit using an open outcry auction system, the emini futures are traded in an electronic marketplace. This allows minimum slippage attracting smaller investors. Futures, unlike stocks, do not have a short selling rule on a uptick. This is a benefit for traders as well as the nice leverage one can get trading the emini's.

 

What are stock index futures?

 

A stock index represents a portfolio of stocks grouped accordingly. For example, the NASDAQ 100 index represents 100 companies while the S&P 500 index represents 500 large capitalization companies. The S&P 500 is also a benchmark used by money managers to measure their portfolio performance.

 

On the other hand, the mini-sized Dow futures contract represents only 30 stocks. Also known as the mini Dow, it is traded on the Chicago Board of Trade. Ticker symbol: YM.

 

Futures Contract Month Symbols:

 

Emini futures settle and expire on a quarterly cycle. The contract month, also known as the delivery month is the month in which the contract expires. Most traders switch contracts at the roll over date. This can easily be identified by looking at the liquidity. When traders migrate from one contract to the next, liquidity drops.

  • Contract Month Symbols
  • March: H
  • June: M
  • September: U
  • December: Z

What is a TICK?

 

A tick is the minimum price movement in the futures contract. One tick in the S&P 500 emini is equivalent to 0.25 points or $12.50. One tick in the mini Dow is equivalent to 1 point or $5.

 

How much do I need to start trading?

 

Depending on your broker, you can start trading eminis anywhere from $2000 - $5000. However, I do not recommend this. Playing the futures markets is a risky game unless you understand what you are doing. For any new traders looking to trade the emini's, I recommend a minimum of $20,000 and trade 2 contract at most only.

 

Always test your setups and paper trade if you are not ready. Also, when picking your broker, make sure you are getting good fills without any slippage. Slippage and commision can cost heavily. Choose a reliable broker who will connect you to the trading desk if your computer crashes or internet connection dies.

 

Good luck & best of trading,

 

Soultrader

Share this post


Link to post
Share on other sites
Guest cooter

Hi SoulTrader,

 

Nice tutorial for the beginner. You should note that the CME has changed the e-mini Nasdaq from half-tick increments to quarter-ticks (0.25 of a point) for a while now.

 

Value of 1 tick (0.25 of a point) on e-mini Nasdaq 100 = $5.00

 

More info here: CME E-mini NASDAQ-100 Futures & Options

Share this post


Link to post
Share on other sites

RE: E-mini S&P 500

 

Greetings and Aloha

Does anyone know of a live trading "room" or forum

with someone actually doing live trading.

 

This might be for a newbie to see/hear exactly the thinking of the trader in charge of the "room"?

 

Tks stewart

Share this post


Link to post
Share on other sites
RE: E-mini S&P 500

 

Greetings and Aloha

Does anyone know of a live trading "room" or forum

with someone actually doing live trading.

 

This might be for a newbie to see/hear exactly the thinking of the trader in charge of the "room"?

 

Tks stewart

 

Hey stewart,

 

Most people charge for rooms where they do live trading and explain setups. If your looking for some discussion during market hours TL has its own chat you might want to check that out. Also Ensign's echat has some rooms where they will post charts but no step by step "this is what im doing and why"...

 

Hope it helps.

Share this post


Link to post
Share on other sites
RE: E-mini S&P 500

 

Greetings and Aloha

Does anyone know of a live trading "room" or forum

with someone actually doing live trading.

 

This might be for a newbie to see/hear exactly the thinking of the trader in charge of the "room"?

 

Tks stewart

 

No matter how good the trader in the room you are in is you will have a hard time trading like he or she does because you do not have the same mental makeup as this person. They may be a gambler, you may be a gambler. You need to find what works for you, often through trial and error, but you can always test ideas on SIM. The internet is an unbelievable free (mostly) resource. With many setups explained all over the place and many sites dedicated to free education. You are on the best one right now. :2c:

Share this post


Link to post
Share on other sites
Guest Candelo7
No matter how good the trader in the room you are in is you will have a hard time trading like he or she does because you do not have the same mental makeup as this person. They may be a gambler, you may be a gambler. You need to find what works for you, often through trial and error, but you can always test ideas on SIM. The internet is an unbelievable free (mostly) resource. With many setups explained all over the place and many sites dedicated to free education. You are on the best one right now. :2c:

 

What would you sudgest or recomend in terms of contentin this site for new traders.particularly e mini contract traders:confused:

Share this post


Link to post
Share on other sites
What would you sudgest or recomend in terms of contentin this site for new traders.particularly e mini contract traders:confused:

 

This website is the best I have found and I would recommend starting in the beginners forum; then moving on to reading the "Candlestick Corner" also the "reading charts in real time" forum, the "Wycoff Forum" also "Understanding Eminis: Beginner's Guide" Also look into the swing trading and day trading forums and decide which suits you best. Finally I would say the "money management" and "Trading Psychology" forums are very important.

 

All of the above will help you very much. I know this seems like a great deal of studying but if you put your time in you will have the greatest job ever..............In my opinion

 

I wish you the best of luck. :)

 

Chris

Share this post


Link to post
Share on other sites

The absolute best book on ES/NQ trading in my mind (and in my library) is TRADING BY THE MINUTE by Joe Ross. His chapter on day trading ES 5 minute charts, well, let's just say that it is unrivaled, period.

 

 

Luv,

Phantom

Share this post


Link to post
Share on other sites

Thanks for the reply.

 

but no that isn't it. I am referring to the tape. the time and sales for the ES is giving me prices like that. The Interactive Broker's help person in a message said, the other person told them that it was because prints for the last 30 minutes were being averaged....wholly smoke I sure as hell hope they are not 30 minutes behind...hahaha....then they said that it is a known defect in the system along with others and are working to correct it.

 

I don't know I haven't a clue. I know there are others watching the tape but...no one on here I guess.

 

Thanks.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • Date : 21st October 2021. Market Update – October 21 – Stocks & USD slip on big Earnings Day. USD (USDIndex 93.55) cools a tad and again tests 2-week low (93.47) Yields stronger again, Equities closed up, but FUTS are down (Nikkei -2% on stronger YEN and Yuan). Big day for Earnings – TESLA beat but revenue numbers disappointed some. Oil up on drawdown. Evergrande – Bad News $1.7bn sale of 51% of HK unit to Hopson OFF, $1.7bn sale of HK HQ OFF, $83.5m coupon default triggers tomorrow. Good News $260m bond coupon, extended by 3 mths US Yields (10yr closed higher at 1.63) & – now 1.6533% Equities moved ground higher USA500 +16 (+0.74%) at 4536 (NASDAQ –0.05%) – Big movers – Verizon +2.41% & ABBT +3.3% (PayPal – 4.91%) – USA500.F back to 4500. Asian equities weaker. New VIX contract at +1.49% at 19.60 USOil up on drawdown n strong demand at $82.00 after EIA inventories showed -400K vs build of 2.1m Gold holds at 4-day highs – $1785 FX markets – a recovering USD – EURUSD 1.1646, Cable down from 1.3830+ to 1.3800, & USDJPY – off 4-year highs and pivots at 114.00. European Open The December 10-year Bund future is down -16 ticks, US futures are also in the red. DAX and FTSE 100 futures are both down -0.45 and US futures are also in the red, with the NASDAQ underperforming again, after already closing slightly lower yesterday. Indices remain at high levels, but tapering concerns, the global energy rout and supply chain concerns are capping the outlook for global growth. Markets will continue to watch earnings reports and central bank comments, especially in the UK where officials clearly are laying the ground for an early lift off. Meanwhile the announcement of Weidmann’s departure has raised hopes that the ECB will push even more to circumvent the no-bailout clause permanently – after the end of PEPP, which already helped BTPs to outperform yesterday. Today – US Initial Jobless Claims, Philadelphia Fed Business Index, Existing Home Sales, EZ Consumer Confidence, EU Council Meeting, Fed’s Daly, Waller, RBA’s Lowe, Earnings: AT&T, Intel, American Airlines, Southwest Airlines, ABB, (bottleneck problems) Vivendi, Hermes, (beat) Pernod Ricard,(beat) Barclays, (Revenue big beat) Unilever (Sales miss). Biggest FX Mover @ (06:30 GMT) AUDJPY (-0.50%) Rejection of 86.25 this morning as Yen lifts after a very weak October. Faster MAs aligned lower, MACD signal line dips and & histogram slips significantly lower, RSI 40.00 off OS level, H1 ATR 0.189, Daily ATR 0.817. Always trade with strict risk management. Your capital is the single most important aspect of your trading business. Please note that times displayed based on local time zone and are from time of writing this report. Click HERE to access the full HotForex Economic calendar. Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! Click HERE to READ more Market news. Stuart Cowell Head Market Analyst HotForex Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • Meet a maverick on Blockster   Blockster is a cryptocurrency social platform.   Blockster connects everyone within the blockchain industry into one place—all the cryptocurrencies, the teams behind the projects, as well as, the traders and investors. Communicate and network with the very core of the blockchain industry, and stay ahead of the market trends via Blockster.   Get insightful posts, reviews, breaking news, interesting comments, and latest updates from the world of cryptos, from Azeez Mustapha: https://blockster.com/AzeezMustapha46102 
    • Nice article send in here, do sharing other such articles and also share your experience of Forex Trading.
    • Never tried Forex Trading with software,  I am still learning. But someday, I would like to give it a shot. 
    • Date : 20th October 2021. Market Update – October 20 – USD bounces from 2-week low, Stocks & Yields higher. USD (USDIndex 93.70) recovers from test of 2-week low (93.47) Yields stronger, Equities closed strongly on good Earnings, Netflix beat big time (Subs 4.38m vs 3.86m. – globally now 213.6m) Squid Game watched in 142 million households in 94 countries. Biden expects a deal on infra budget, Chinese housing prices slow, and NK fired more missiles (non-ballistic today) into S. China Sea. US Yields (10yr closed higher at 1.6350) & touched 1.662 earlier – now 1.6495% Equities moved higher gaining momentum USA500 +33 (+0.74%) at 4519 (NASDAQ +0.71%) – Big movers – J&J +2.34% & APPL 1.18% – USA500.F higher into 4503. Asian equities higher (Nikkei +0.76%) VIX closed down again at 15.57 (a new 8-week low – VXN – (which measures Nasdaq volatility) – at lowest since February 2020) USOil down from 7-yr high, at $83.00 after private inventories – trades at $81.00 Gold holds at $1775 now from yesterday’s high of $1785 and low of $1767. FX markets – a recovering USD has – EURUSD 1.1640, Cable down from 1.3800+ after CPI data at 1.3785 & a weaker YEN, USDJPY – 4-year highs – 114.70. Overnight – UK CPI a tick weaker than expected (3.1% vs 3.2%) PPI in line. German PPI much stronger than expected @ 2.3% vs 1.1%. European Open – The December 10-year bund future is down 35 ticks, underperforming versus Treasury futures. Yields moved broadly higher across Europe yesterday and while ECB officials are doing their best to keep rate hike speculation at bay, they are fighting an uphill battle, especially as the BoE is preparing for an early lift off on rates. The surprise misses for UK CPI could dull the expectation. Today – EZ Final CPI, Canadian CPI, ECB’s Elderson, Fed’s Bullard, Earnings – Verizon, Tesla, IBM, Abbot, AMSL, Nestle (already out – a big beat especially for Pet food Division) Biggest FX Mover @ (06:30 GMT) NZDCHF (+0.40%) 5th consecutive day higher today (from 0.6425) breached 0.6600 earlier, and testing 0.6630 now. Faster MAs aligned higher, MACD signal line & histogram trending higher, RSI 65.00 OB but still moving higher, H1 ATR 0.0008, Daily ATR 0.0054. Always trade with strict risk management. Your capital is the single most important aspect of your trading business. Please note that times displayed based on local time zone and are from time of writing this report. Click HERE to access the full HotForex Economic calendar. Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! Click HERE to READ more Market news. Stuart Cowell Head Market Analyst HotForex Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.