Easiest futures market to trade

Easiest futures market to trade

By: Magnus33 Date of post: 18.06.2017

Emini futures markets are growing in popularity.

The Easiest E-mini?

Having actively traded them for many years now, I have witnessed their growth personally and I don't think I would ever want to switch to trading anything else. Because of that, the answer to the subtly phrased question in the title of this article has to be a decisive "yes! This is an article about why e-mini futures markets are the best markets for day traders, especially the new traders who may still be looking for the best trading instrument out there.

There are several reasons for that.

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Let's list them then but not until we mention what emini futures are. That's for those so new to the subject that they might not even have heard about emini futures.

The "mini" part of their name refers thus to their smaller size, which effectively means smaller points.

easiest futures market to trade

What this means is that had your position with 5 emini futures contracts of ES moved 1 point in your favor, you would have made as much a trader trading the full contract ubder the same favorable circumstances. It is probably not that hard to guess what the "e" in "e-mini" stands for. Yes, that's right, it stands for "electronic.

But don't quit your day job yet, and don't stop reading this article yet.

Beginner's Guide To Trading Futures

You will thank us later for this sound advice. With this very basic introduction done, let us now tell you why we believe e-mini futures to be the best markets for those eager to try day trading. Day trading, by the way, does not mean trading every day. It only means opening and closing your position during the same daily session.

You can close literally seconds after opening it, but you can also hold it open for hours. As long as you close it during the same daily session you opened it, you are technically a day trader. This does have some formal or legal consequences but those apply to stock day traders only and we will return to this later.

First of all, it's the ease of access that makes their choice so compelling. This is reflected in more than one way. One of them we already mentioned: But there is also another reason why trading e-mini futures is practically for everyone.

easiest futures market to trade

That's how little one of the emini futures brokers in the US requires you to deposit with them to be able to day trade eminis. While there are many more stock brokers out there some of which offer also e-mini trading, but usually with higher commissions than emini brokers, the number of emini brokers have been growing and these days you do have quite a choice among them.

The pros and cons of trading futures

Namely, as we already alluded to when talking about formal consequences of opening and closing your position during the same day trading session, you cannot do this more than three times during the same session when trading stocks unless you have at least 25 grand in your account.

This rule that prevents smaller stock traders from frequent daytrading, often referred to as the day trading pattern rule, does not apply to e-mini traders who can easily take more than 3 trades during the same day and avoid being penalized in any way by their broker. E-mini futures thus rule quite decisively compared to stocks for those with less money to spare.

But the ease with which you can get access to frequent day trading of e-minis is not the only advantage they hold over stocks. Another major advantage is the leverage they offer.

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Let us explain what it means. There is still one more a reason, rather obvious and quite compelling why you would want to choose day trading e-mini futures over day trading stocks. E-mini futures - the best markets for day trading Emini futures markets are growing in popularity. Copyright Waldemar Puszkarz Disclaimer and Terms of Service.

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