what is an e-mini? (lol i know, call me a newb)

G

Gordon Gekko

first of all, i've been trading for 3+ years...but i've just been trading stocks. i've heard of e-minis a lot, but i've never really understood what they are.

remember what your teacher said....there's no such thing as a stupid question! lol

thanks
 
I'm pretty sure that a mini contract is about 1/5 of a regular contract and the 'e' stands for electronic entry as opposed to a floor trade. Call me newbie too if ya wanna. That's what Iv'e been calling myself for a couple of years.:)
 
plum is correct.. they are electronically traded mini (referring to the margin requirement) contracts on S&P500, nasdaq-100, and dow indexes. i don't know of any other e-minis.. the reason they are so popular (or getting that way anyway) is:

  • high leverage + high liquidity. you can easily make/lose 25% in a day
  • they all trade on globex (or cbot) -- no multiple markets
  • no downtick rule
  • better tax treatment. file your total P/L and pay 40% as long term gains and 60% as short term gains.
 
Gekko, no question is a stupid question. (Except yours):D :D :D

Don't make people try and explain it in this thread just go to

www.cme.com

and read all about it. You will come back knowing more about e-minis than most people on this board.:)
 
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