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Thursday, February 8, 2007

Advantages of Mini Futures Trading

Today more and more online traders, especially beginners, want to trade mini future contracts. Today above 1,000,000 e-mini futures contracts, as an average, are traded in S&P and Nasdaq markets together per day. There are many things that make online mini contracts trading popular to day traders and swing traders. Some of them are,
  • Liquid market – the high volumes of e-mini futures trades make the market much stable.
  • Narrow spreads – the bid and ask spreads of S&P e-mini market is 0.25 points, Nasdaq e-mini market is 0.50 points and of Dow e-mini market is usually between 1 and 5 points.
  • Leverage – most e-mini trading brokers allow day mini futures traders to have as much as the exchange required margin to trade.
In addition to these the very low margin requirements, the ability to go short at any time, and ability to trade an index because of the leverage you get make online e-mini futures trading more attractive to all sorts of day traders.

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