Can someone help me understand E-mini futures contract price?(Screenshot inside)

P

Phillop

Hello, I am using a ninja trader demo account and I pulled up the emini future symbol ES 12-17 and I am assuming the price is $2514.25 per contract but I keep hearing the price of one contract is $500.00. Do I have the wrong symbol up or is it that it was $500.00 a while ago but the price has risen to what it is now? I am confused as to why I have heard $500.00 but shows $2514.25.
 

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Phillop said:
Hello, I am using a ninja trader demo account and I pulled up the emini future symbol ES 12-17 and I am assuming the price is $2514.25 per contract but I keep hearing the price of one contract is $500.00. Do I have the wrong symbol up or is it that it was $500.00 a while ago but the price has risen to what it is now? I am confused as to why I have heard $500.00 but shows $2514.25.
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The "price" of 1 ES contract is actually "The SP index X $50". IOW... the nominal value of 1 ES is $~125,000, at this time.

$500 is likely the margin your broker requires for a day trade per contract on the ES.
 
Thanks for the reply. Oh I see. So $500.00 is the margin required and the $2514.25 is the price I have to pay? Or do I have to pay the $125,000?
 
Phillop said:
Thanks for the reply. Oh I see. So $500.00 is the margin required and the $2514.25 is the price I have to pay? Or do I have to pay the $125,000?
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Neither. The value of the contract is ~$125,000... 2514 X $50/point. You "pay" $500 in margin to put the $125,000 in play. Your win or loss is determined by how much the $125,000 goes up or down.
 
Value of 1 ES Contract 50 * Quote Price, which as of right now has a value of= 50 * 2514.5 = $125,725 . Because the price of ES is statistically unlikely to vary "too" erratically, brokers will allow you to purchase an ES contract with an intraday collateral of around $500. I.e, if you cash buying power is $2000 before buying an ES contract... it will say $1500 after. If you the contract moves against you by 30 points (1 point = $50, 30 = $1500), you're likely to get a margin call. If the price of ES suddently dropped to zero... you'd be on the hook for the entire $125K.

Futures are leveraged. I recommend you read a couple books about futures trading prior to switching to real money.

Welcome, and good luck.
 
IAS_LLC said:
...If the price of ES suddently dropped to zero... you'd be on the hook for the entire $125K.
...
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If the ES dropped from where it is now to zero during a daytrading session, I think money would be the least of our worries. Think zombie apocalypse. :wtf:
 
Overnight said:
If the ES dropped from where it is now to zero during a daytrading session, I think money would be the least of our worries. Think zombie apocalypse. :wtf:
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I know, just trying to convey the fact that margin requirements and market exposure aren't the same thing
 
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