Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

Soultrader

Understanding Eminis: Beginner's Guide

Recommended Posts

Two popular e-mini contracts:

  • E-mini S&P 500
  • Symbol: ES
  • Exchange: Chicago Mercantile Exchange (CME)
  • Value of 1 Tick: 0.25 = $12.50
  • Value of contract: $50 x S&P price = Value
  • Trading Hours: 5:30 pm Sunday to 3:15pm Friday (Central Time)
  • Contract Months: March, June, September, December
  • Last Trading Day: Up to 8:30 am on the 3rd Friday of contract month
  • E-mini NASDAQ 100
  • Symbol: NQ
  • Exchange: Chicago Mercantile Exchange (CME)
  • Value of 1 Tick: 0.50 = $10.00
  • Value of contract: $20 x NASDAQ price = Value
  • Trading Hours: 5:30 pm Sunday to 3:15pm Friday (Central Time)
  • Contract Months: March, June, September, December
  • Last Trading Day: Up to 8:30 am on the 3rd Friday of contract month

While the big S&P 500 contracts are traded in the pit using an open outcry auction system, the emini futures are traded in an electronic marketplace. This allows minimum slippage attracting smaller investors. Futures, unlike stocks, do not have a short selling rule on a uptick. This is a benefit for traders as well as the nice leverage one can get trading the emini's.

 

What are stock index futures?

 

A stock index represents a portfolio of stocks grouped accordingly. For example, the NASDAQ 100 index represents 100 companies while the S&P 500 index represents 500 large capitalization companies. The S&P 500 is also a benchmark used by money managers to measure their portfolio performance.

 

On the other hand, the mini-sized Dow futures contract represents only 30 stocks. Also known as the mini Dow, it is traded on the Chicago Board of Trade. Ticker symbol: YM.

 

Futures Contract Month Symbols:

 

Emini futures settle and expire on a quarterly cycle. The contract month, also known as the delivery month is the month in which the contract expires. Most traders switch contracts at the roll over date. This can easily be identified by looking at the liquidity. When traders migrate from one contract to the next, liquidity drops.

  • Contract Month Symbols
  • March: H
  • June: M
  • September: U
  • December: Z

What is a TICK?

 

A tick is the minimum price movement in the futures contract. One tick in the S&P 500 emini is equivalent to 0.25 points or $12.50. One tick in the mini Dow is equivalent to 1 point or $5.

 

How much do I need to start trading?

 

Depending on your broker, you can start trading eminis anywhere from $2000 - $5000. However, I do not recommend this. Playing the futures markets is a risky game unless you understand what you are doing. For any new traders looking to trade the emini's, I recommend a minimum of $20,000 and trade 2 contract at most only.

 

Always test your setups and paper trade if you are not ready. Also, when picking your broker, make sure you are getting good fills without any slippage. Slippage and commision can cost heavily. Choose a reliable broker who will connect you to the trading desk if your computer crashes or internet connection dies.

 

Good luck & best of trading,

 

Soultrader

Share this post


Link to post
Share on other sites
Guest cooter

Hi SoulTrader,

 

Nice tutorial for the beginner. You should note that the CME has changed the e-mini Nasdaq from half-tick increments to quarter-ticks (0.25 of a point) for a while now.

 

Value of 1 tick (0.25 of a point) on e-mini Nasdaq 100 = $5.00

 

More info here: CME E-mini NASDAQ-100 Futures & Options

Share this post


Link to post
Share on other sites

RE: E-mini S&P 500

 

Greetings and Aloha

Does anyone know of a live trading "room" or forum

with someone actually doing live trading.

 

This might be for a newbie to see/hear exactly the thinking of the trader in charge of the "room"?

 

Tks stewart

Share this post


Link to post
Share on other sites
  csg1000 said:
RE: E-mini S&P 500

 

Greetings and Aloha

Does anyone know of a live trading "room" or forum

with someone actually doing live trading.

 

This might be for a newbie to see/hear exactly the thinking of the trader in charge of the "room"?

 

Tks stewart

 

Hey stewart,

 

Most people charge for rooms where they do live trading and explain setups. If your looking for some discussion during market hours TL has its own chat you might want to check that out. Also Ensign's echat has some rooms where they will post charts but no step by step "this is what im doing and why"...

 

Hope it helps.

Share this post


Link to post
Share on other sites
  csg1000 said:
RE: E-mini S&P 500

 

Greetings and Aloha

Does anyone know of a live trading "room" or forum

with someone actually doing live trading.

 

This might be for a newbie to see/hear exactly the thinking of the trader in charge of the "room"?

 

Tks stewart

 

No matter how good the trader in the room you are in is you will have a hard time trading like he or she does because you do not have the same mental makeup as this person. They may be a gambler, you may be a gambler. You need to find what works for you, often through trial and error, but you can always test ideas on SIM. The internet is an unbelievable free (mostly) resource. With many setups explained all over the place and many sites dedicated to free education. You are on the best one right now. :2c:

Share this post


Link to post
Share on other sites
Guest Candelo7
  bathrobe said:
No matter how good the trader in the room you are in is you will have a hard time trading like he or she does because you do not have the same mental makeup as this person. They may be a gambler, you may be a gambler. You need to find what works for you, often through trial and error, but you can always test ideas on SIM. The internet is an unbelievable free (mostly) resource. With many setups explained all over the place and many sites dedicated to free education. You are on the best one right now. :2c:

 

What would you sudgest or recomend in terms of contentin this site for new traders.particularly e mini contract traders:confused:

Share this post


Link to post
Share on other sites
  Candelo7 said:
What would you sudgest or recomend in terms of contentin this site for new traders.particularly e mini contract traders:confused:

 

This website is the best I have found and I would recommend starting in the beginners forum; then moving on to reading the "Candlestick Corner" also the "reading charts in real time" forum, the "Wycoff Forum" also "Understanding Eminis: Beginner's Guide" Also look into the swing trading and day trading forums and decide which suits you best. Finally I would say the "money management" and "Trading Psychology" forums are very important.

 

All of the above will help you very much. I know this seems like a great deal of studying but if you put your time in you will have the greatest job ever..............In my opinion

 

I wish you the best of luck. :)

 

Chris

Share this post


Link to post
Share on other sites

The absolute best book on ES/NQ trading in my mind (and in my library) is TRADING BY THE MINUTE by Joe Ross. His chapter on day trading ES 5 minute charts, well, let's just say that it is unrivaled, period.

 

 

Luv,

Phantom

Share this post


Link to post
Share on other sites

Thanks for the reply.

 

but no that isn't it. I am referring to the tape. the time and sales for the ES is giving me prices like that. The Interactive Broker's help person in a message said, the other person told them that it was because prints for the last 30 minutes were being averaged....wholly smoke I sure as hell hope they are not 30 minutes behind...hahaha....then they said that it is a known defect in the system along with others and are working to correct it.

 

I don't know I haven't a clue. I know there are others watching the tape but...no one on here I guess.

 

Thanks.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • HLF Herbalife stock, watch for a bull flag breakout above 9.02 at https://stockconsultant.com/?HLF
    • Date: 1st April 2025.   Will Gold’s Rally Hold Strong as New Trade Tariffs Take Effect Tomorrow?   Gold continues to increase in value for a sixth consecutive day and is trading more than 17% higher in 2025. Amid fear of higher inflation, a recession and the tariffs war escalating investors continue to invest into Gold pushing demand higher. The trade policy from April 2nd onwards continues to be a key factor for the whole market. Can Gold maintain its upward trend? Trade Policy From Tomorrow Onwards Starting as soon as tomorrow, a 25% tariff will be imposed on all passenger cars imported into the United States. While this White House policy is anticipated to negatively affect European industrial performance, it will also lead to higher transportation and maintenance costs for everyday American taxpayers. The negative impact expected on both the EU and US is one of the reasons investors continue to buy Gold. Additionally, last month, President Donald Trump announced reciprocal sanctions against any trade partners that impose import restrictions on US goods. Furthermore, tariffs on products from Canada and the EU could increase even more if they attempt to coordinate a response. Overall, investors continue to worry that new trade barriers will prompt retaliatory measures, particularly from China, the Eurozone, and Japan. Any retaliation is likely to escalate the trade conflict and prompt another reaction from the US. Experts at Goldman Sachs and other investment banks warn that this will lead to rising inflation and unemployment. They also caution that it could effectively halt economic growth in the US.   XAUUSD 1-Hour Chart   The Weakness In The US Dollar Another factor which is allowing the price of XAUUSD to increase in value is the US Dollar which has been unable to maintain any bullish momentum. Despite last week’s Core PCE Price Index rising to its highest level since February 2024, the US Dollar has been unable to see any significant rise in value. Due to the US Dollar and Gold's inverse correlation, the price of Gold is benefiting from the Dollar weakness. Investors worry that new trade barriers will prompt retaliatory measures from China, the Eurozone, and Japan, potentially escalating the conflict. Experts at The Goldman Sachs Group Inc. believe that such actions by the US administration will drive rising inflation and unemployment while effectively halting economic growth in the country. Can Gold Maintain Momentum? When it comes to technical analysis, the price of Gold is not trading at a price where oscillators are indicating the instrument is overbought. The Relative Strength Index currently trades at 68.88, outside of the overbought area, since Gold’s price fell 0.65% during this morning’s session. However, even with this decline, the price still remains 0.40% higher than the day’s open price. In terms of fundamental analysis, there continues to be plenty of factors indicating the price could continue to rise. However, the price movement of the week will also partially depend on the employment data from the US. The US is due to release the JOLTS Job Vacancies for February this afternoon, the ADP Non-Farm Employment Change tomorrow, and the NFP Change and Unemployment Rate on Friday. If all data reads higher than expectations, investors may look to sell to lock in profits at the high price. Key Takeaway Points: Gold’s Rally Continues – Up 17% in 2025 as investors seek safety from inflation, recession fears, and trade tensions. Trade War Impact – New US tariffs and potential retaliation from China, the EU, and Japan drive uncertainty, boosting Gold demand. Weak US Dollar – The Dollar’s struggle supports Gold’s rise due to their inverse correlation. Gold’s Outlook – Uptrend may continue, but US jobs data could trigger profit-taking. Always trade with strict risk management. Your capital is the single most important aspect of your trading business.   Please note that times displayed based on local time zone and are from time of writing this report.   Click HERE to access the full HFM Economic calendar.   Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!   Click HERE to READ more Market news.   Michalis Efthymiou HFMarkets   Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • Date: 31st March 2025.   Trump Confirms Tariffs on All Countries, Sending Stocks Lower.   The NASDAQ continues to trade lower due to the US confirming the latest tariffs will be on all countries. In addition to this, bearish volatility also is largely due to the higher inflation data from Friday. The NASDAQ declines to its lowest price since September 11th 2024. Core PCE Price Index - Inflation Increases Again! The PCE Price Index read 2.5% aligning with expert forecasts not triggering any alarm bells. However, the Core PCE Price Index rose from 0.3% to 0.4% MoM and from 2.7% to 2.8% YoY, signalling growing inflationary pressure. This increases the likelihood that the Federal Reserve will maintain elevated interest rates for an extended period. The NASDAQ fell 2.60% due to the higher inflation reading which is known to pressure the stock market due to pressure on consumer demand and a more hawkish Federal Reserve. Boston Fed President Susan Collins recently commented that tariffs could drive up inflation, though the long-term impact remains uncertain. She told journalists that a short-term spike is the most probable outcome but believes the current pause in monetary policy adjustments is appropriate given the prevailing uncertainties. Although, certain investment banks such as JP Morgan actually believe the Federal Reserve will be forced into cutting rates. This is due to expectations that the economy will struggle under the new trade policy. For example, JP Morgan expects the Federal Reserve to delay rate cuts but will quickly cut towards the end of 2025. Market Risk Appetite Takes a Hit! A big factor for the day is the drop in the risk appetite of investors. This can be seen from the VIX which is up almost 6%, Gold which is trading 1.30% higher and the Japanese Yen which is the day’s best performing currency. Most safe haven assets, bar the US Dollar, increase in value. It is also worth noting that all indices are decreasing in value during this morning's Asian session with the Nikkei225 and NASDAQ witnessing the strongest decline. Previously the stock market rose in value as investors heard rumours that tariffs would only be on certain countries. This bullish swing occurred between March 14th and 25th. Over the weekend, President Donald Trump indicated that the upcoming tariffs would apply to all countries, not just those with the largest trade imbalances with the US. NASDAQ - Technical Analysis In terms of technical analysis, the NASDAQ continues to obtain indications that sellers control the price action. The price opens on a bearish price gap measuring 0.30% and trades below all Moving Averages on all timeframes. The NASDAQ also trades below the VWAP and almost 100% of the most influential components (stocks) are declining in value.     The next significant support level is at $18,313, and the resistance level stands at $20,367.95. Key Takeaway Points: NASDAQ falls to its lowest since September 2024 as the US confirms tariffs on all countries, adding to inflation concerns. Core PCE inflation rises to 0.4% MoM and 2.8% YoY, increasing the likelihood of prolonged high interest rates. Investor risk appetite drops as VIX jumps 6%, gold gains 1.3%, and safe-haven assets outperform. NASDAQ shows strong bearish momentum, trading below key technical levels with support at $18,313 and resistance at $20,367.95. Always trade with strict risk management. Your capital is the single most important aspect of your trading business.   Please note that times displayed based on local time zone and are from time of writing this report.   Click HERE to access the full HFM Economic calendar.   Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!   Click HERE to READ more Market news.   Michalis Efthymiou HFMarkets   Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • PM Philip Morris stock, top of range breakout at https://stockconsultant.com/?PM
    • EXC Exelon stock, nice range breakout at https://stockconsultant.com/?EXC
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.