Emini Day Trading Rules
Types of eminis
There are a number of types of eminis you can trade when day trading futures. These eminis are typically linked to stockmarkets (such as the S&P emini), but can also be for commodities (such as emini gold) or currencies (such as emini forex).
What is the difference between E-Mini Trading and Regular Stock Market Trades?
Eminis, known as emini futures, are smaller units of regular futures contracts or 'full contracts'. Emini futures contracts are relatively new to the trading scene having been around for only ten years. Several futures markets both full and emini futures contracts; the most popular being the S&P 500 futures market.
The reason trading in these contracts is attractive is primarily due to the huge leverage they offer.
What E-Mini Charts are important?
Emini Charts contain indicators that are vital to your emini trading success! Emini charts will inform you that the emini trading market will often trade technically, shrugging off any fundamental news.
What is a typical E-Mini Spread?
An e-mini spread may typically be just a couple of ticks depending on the liquidity of the market.
What is a typical E-Mini Option?
An e-mini option is used often in online day trading to participate in the market to own the right to buy or sell the emini futures contract at the strike price when the market has penetrated that price:
- A call would allow a long position at the strike price when the market has gone through it.
- A put would allow a short position at the strike price when the market has gone through it.
This emini option is an exercise to take the long or short position. More often with emini options, traders sell their emini option for a differential in the premium; perhaps at an inflated premium. Most emini options expire worthless. Many day trading emini option strategies are used to enhance profits on futures trades, to hedge, or to take advantage of markets within a trading range or markets that may break or break-out.
What is a E-Mini Rollover?
An e-mini rollover may occur as the volume shifts from the front month to the next month out. Emini rollover is the process of exiting the front month at market and re-establishing the same position in the next month at market. The actual expiration of the indices (the emini rollover date) would be, for example, the 3rd Thursday of each month.