A Day Trader's Contract:
Day Trading The E-Mini S&P 500 and Dow Jones Industrial Average Indexes!
Many if not most investors have opinions when it comes to forecasting market direction. Day trading affords them the ability to capitalize on those opinions, whether by the minute, half hour, hour or day. But now, with fewer and fewer stocks participating in the bull market, it’s getting more difficult to find the "hot" stocks. The slimmer pickings are exacerbated by an increasing tendency among the high fliers to grow, only to crash and burn just as quickly. Narrow leadership and sector rotation can make selecting winning stocks about as sure a bet as finding that proverbial needle in the haystack. However, wouldn’t it be a lot simpler and easier if you could trade the Index itself? And also have the ability to enter and exit those markets in approximately one second?
AN ALTERNATIVE TO STOCK TRADING
Instead of paying thousands of dollars in commissions and having to put up a fortune to buy all of the stocks in the NASDAQ, Dow or the S&P 500, wouldn’t it make more sense to participate in all the stocks comprising the NASDAQ, DJIA or S&P 500 for a commission of under $10?
This is now possible because of the DJIA, NASDAQ, E-Mini and E-Mini S&P 500 futures contracts introduced by the Chicago Board of Trade and the Chicago Mercantile Exchange. For example, in the E-Mini S&P 500 traders can participate in all the stocks of the S&P 500 with a margin deposit of approximately $4,600. (Or $500 per contract day-trading margin for qualified accounts)
Day trading margins are usually only one-third the amount required for a position held overnight. If you were day trading, you would be participating in all the 500 stocks in the E-Mini S&P Index for a margin deposit of only $1,188, and you could routinely expect to receive your market order fill prices in under 1 second. (Or $500 per contract day-trading for qualified accounts)
-Be aware that futures contracts are more leveraged trading instruments than stocks, and this can work for you, as well as against you.-
|Specs||DJIA Futures Contract||E-Mini S&P 500 Futures Contract|
|Size||10 times the DJIA. If, for example, the DJIA is trading at 10,000, the value of the futures contract is $100,000.||50 times the S&P 500 Index. If, for example, the S&P 500 Index futures contract is trading at 1,400.00, the value of one contract is $70,000.|
|Movement Value||Each point in the futures contract is equal to $10. For example, a move in the DJIA futures contract from 11,000 to 11,100 equals 100 points x $10, or $1,000. (Each one point move in the DJIA stocks is approximately equal to a one point move in the DJIA futures contract.)||Each 100-point move ("handle") in the E-Mini S&P 500 futures contract equals $50. A two "handle" move from 1100.00 to 1102.00 equals $100. A one-half "handle" move from 1100.00 to 1100.50 equals $25.|
|Margin||Exchange Minimum||Exchange Minimum|
These index futures contracts allow investors to participate in the Dow and S&P 500—and at a fraction of the cost of purchasing the actual stocks outright.
UP OR DOWN
Most day traders of stocks play the market only from the up (long) side. But, with the Mini Dow, NASDAQ, S&P 500 E-Mini, and DJIA futures contracts, traders can just as easily play the market from the down (short) side, too. This adds an entire new dimension of potential opportunity for day traders.
ACTIVE DAY TRADING
With the sharp up and down moves in the NASDAQ, DOW, and S&P 500, there are often trading opportunities to trade both the long and short side of the market several times a day. Be aware, trading futures invovles risk ok loss.
ELECTRONIC DAY TRADING
If you prefer to electronically trade on your own, through the Internet, our state of the art trading platform allows you to place and receive your E-Mini NASDAQ, E-Mini S&P 500, and Dow Futures fill price in as little as a second. From the time you place your market order, you can typically receive your fill price back in under one second! This is almost instant execution and reporting of your fill price—vital for day traders.
MOBILE PHONE FUTURES TRADING APP
Adding to the versatility in day trading the E-Mini NASDAQ, S&P 500 and the DJIA futures contracts is the option of trading wirelessly from a laptop computer or mobile phone! You can almost instantly connect with our state-of-the-art Order Entry System. You then can receive live quotes, keep track of your account, transmit your order and receive your fill confirmations in seconds! Now, whether you are at a party, golfing, in your car, at a sporting event, or virtually anywhere, you can day trade as conveniently as though you were sitting in your office or home!
Past performance is not necessarily indicative of future results. Transactions in futures carry a high degree of risk. The amount of initial margin is small relative to the value of the futures contracts so that transactions are leveraged. A relatively small market movement will have a proportionately large impact on your account. This could work for or against you. You could lose more than your initial investment.
The E-Mini NASDAQ, E-Mini S&P 500, and the DJIA futures contracts provide a highly versatile, fast, efficient, and economical means of potentiallly capitalizing on the daily swings in stocks. In day trading the E-Mini NASDAQ, E-Mini S&P 500 and in DJIA futures contracts, traders can focus on an entire basket of stocks at a fraction of the cost of commissions and avoid the expense of trading many individual stocks. At the same time, traders can potentially capitalize on both rising and falling markets. There is no longer a need to tie up large sums of money purchasing all the individual stocks of every index. And, with online futures trading, you can trade through the Internet and receive your fill prices back in under a second. In day trading, you know exactly where you stand at the end of each day without the risk inherent in holding positions overnight. When day trading, each day represents a new opportunity. Once you learn more about the many commission cost advantages of day trading the E-Mini NASDAQ, E-Mini S&P 500 and the DJIA futures contracts, you may not want to day trade individual stocks again!
FREE INVESTOR'S KIT
Learn more about the E-Mini NASDAQ, S&P 500 and the Dow Jones Industrial Average Indexes in our free "Stock Indices Trading Kit." Easy to read and highly informative, the kit contains information on the E-Mini NASDAQ, E-Mini S&P 500 and the Dow Jones Industrial Average Indexes! Some of the valuable free information you’ll receive in the kit:
- E-Mini Contract Highlights
- E-Mini S&P Futures & Options at the CME
- Questions & Answers on E-Mini S&P 5000 Futures & Options
- E-Mini NASDAQ 100 Futures
- Contract Highlights
- E-Mini NASDAQ 100 Q&A
- Statistical Data
- Facts On The Dow Jones Industrial Average Futures and Options Contract
- Dow Jones Industrial Average Futures & Options Introductory Strategies For Individual Investors
P.S. As an added benefit, you can save up to 30%; in taxes on profits, in trading the stock index futures compared to outright stocks (positions held under one year)
INVESTORS SHOULD ALWAYS CONSULT THEIR OWN TAX ACCOUNTANT FOR INFORMATION ABOUT TAXES.
Please be aware that trading futures contracts involves the potential for unlimited risk.