The Chicago Mercantile Exchange’s E-mini futures
track the most popular broad-based stock index benchmarks
in the financial world. The E-mini's can provide opportunities for those traders wishing to profit from or protect
themselves against movements in the price of these indices, and with their smaller contract size, the E-mini's are
much more affordable than the corresponding regular-sized contracts.
The Benefit of Diversification
Diversification has the statistical benefit of lowering overall risk - as some stocks are rising in price, others
may be declining, providing an overall smoother rate of return. E-mini's provide this diversification
with only one transaction. And buy capturing the performance of a diverse group of stocks, the
investor is also more likely to catch the next "rising star" stock, without having to rely on chance
or having to invest hours and hours of market analysis.
Earn the Benchmark Performance
The performance of many types of investment vehicles are benchmarked against the major
equity indices such as the S&P 500®. For instance, the return of a mutual fund is often evaluated
in relation to a broad-based index: Did it over-perform or under-perform the index? Why take the risk
of earning less than the index when an investor can easily match the index's performance
with E-mini futures...and without having to pay any management fees.
Worried About a Market Collapse?
With uncertainty perpetuated by lingering threat of terrorism and the depressing affects of rising interest rates
and sustained high energy prices, an
investor may feel the stock market to be vulnerable to a sharp fall in price. Yet liquidating individual stock
holdings is not only time-consuming but disrupts a portfolio that may have been carefully crafted
over a long period of time.
E-mini's can help...
Interested in Day-Trading?
By opening and closing all positions within the same trading session, day-trading has no risk or market exposure overnight.
The trader can enjoy a good night's sleep.
The margins for day trading are also reduced significantly, so more contracts can be traded
for a given capital base. Day-trading E-mini futures...
The E-mini complex provides a world of trading opportunities. If you are not familiar with these
popular contracts, learn more with this free E-mini CD.