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What Is the E-mini S&P Trading Secret?


Update – this post was written before the launch of CME’s newest product – the Micro E-Mini. Here’s a link to a Micro E-mini resources page.

The futures markets offer participants an unparalleled array of trading opportunities. From hedging agricultural commodity risk to speculating upon variations in crude oil pricing, futures offer a wide-variety of benefits to active traders all over the world.

One of the most attractive ways of trading futures is through the line of E-mini products offered by the Chicago Mercantile Exchange (CME). The leading U.S. equities indices, energy, and metal asset classes are available for trade via an E-mini contract. No matter what your market-related goals are, it’s likely that there’s an E-mini product suited for the task.

An Ideal Target for Active Traders: The E-mini S&P 500

The most popular of all E-mini products is the Emini S&P 500. Based on the Standard & Poor’s 500 stock index, the E-mini S&P 500 appeals to retail and institutional traders alike. It’s one of the premier contracts available on the CME.

For those traders interested in engaging futures from an active intraday perspective, the E-mini S&P 500 is an ideal target. Featuring robust liquidity and consistent volatility, it affords active traders optimal conditions for executing momentum, scalping or day trading strategies.

Here are the specifications for the Emini S&P 500 contract listed on the CME:

Symbol ES
Tick Size .25
Tick Value $12.50
Expiration Quarterly
Settlement Financial

The Standard & Poor’s 500 is a tried-and-true barometer for the U.S. equities markets. It measures the performance of 500 select U.S. stocks, with companies holding the largest market capitalizations wielding the most influence. Through the following equation, the S&P 500’s index value is calculated:

  • Index Value = Total Market Cap of All S&P 500 Listings / S&P Index Divisor

Perhaps the best kept -mini S&P trading secret is Standard & Poor’s proprietary divisor in the above equation. It’s the backbone of the S&P 500 index valuation and a vital element in E-mini S&P 500 pricing.

Does a Valid Emini S&P Trading Secret Exist?

The phrase “futures trading” carries a variety of connotations, both positive and negative. Countless financial professionals assert that the futures markets are opportune venues for making money. Conversely, legions of unsuccessful traders have a different view. No matter which side of the debate you’re on, futures products, including the E-mini S&P 500, remain a viable way of interacting with the capital markets.

Any trades are educational examples only. They do not include commissions and fees.

If you’re interested in the challenge of pursuing profit in the arena of active futures trading, the E-mini S&P 500 offers several advantages over other products:

  • Public interest: The S&P 500 is a household name in finance and one of the most-watched equity indices in the world. Periods of lagging daily traded volumes and open interest are extremely rare.
  • Low barriers to entry: All you need to trade the E-mini S&Ps is some capital, a brokerage account and internet connectivity.
  • Limited margins: Small intraday and maintenance margins give independent retail traders an opportunity to boost their profit potential.
  • Reduced commissions: Many brokerages cut commissions for the E-mini S&P contract, an added incentive for active traders.

Unfortunately, there’s no quintessential E-mini S&P trading secret that guarantees success. Achieving longevity in the marketplace is a product of dedication, desire and tenacity. No matter what type of trader or market is involved, achieving longevity in the marketplace is hard work.

Nonetheless, the availability of leverage and reduced commission structures are attractive to active traders. Factor in a second-to-none depth of market coupled with consistent volatility, and many industry professionals elect to trade the E-mini S&Ps on a daily basis.

Trading The Emini S&P 500

While finding a valid E-mini S&P trading secret is no easy task, the product itself offers a rich diversity of options. Scalping, day trading, and longer-term investment strategies are readily implemented. The sky is truly the limit.

For more information on how to become involved trading the E-mini S&P 500, contact the futures pros at StoneX. Providing market participants with self-directed and broker-assisted options for over 25 years, the team at StoneX has everything you need make futures work for you.

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