| Many times you will see E-mini along with "S&P 500." | | | | The other three important months of the cycle are |
| E-mini S&P 500 (ES) is the full name, and is one | | | | June, September, and December. ES trades 5 days a |
| example of an e-mini contract. Although it is just one | | | | week for 23.25 hours each day. |
| example, it is also the most popular out of them all. | | | | Some of the other popular e-minis include 30 year US |
| S&P is an e-mini contract that is traded on the | | | | Treasury Bond, mini silver, mini gold, E-mini Nasdaq 100 |
| GLOBEX platform of the Chicago Mercantile | | | | Index, E-mini Dow Jones Industrial average, E-micro |
| Exchange. S&P was not always an e-mini. Before | | | | Australian Dollar, E-micro Eurodollar, and mini Russell |
| 1997 the S&P contract was just too big for traders, at | | | | 200 Index. The futures range from foreign currency to |
| $500 times more than the index. In order to meet the | | | | oil to bonds and more. |
| needs of day traders, the Chicago Mercantile | | | | This type of trading has a lot more benefits, which is |
| Exchange implemented the new value to that of $50 | | | | evident in the fact that the market changed the value |
| times the S&P 500 index. | | | | of a stock specifically to meet the needs of e-mini |
| The e-mini S&P 500 was much more doable for those | | | | traders. Working from home with just a computer and |
| trading due to the decreased size. The advantage of | | | | an internet connection is very convenient. The ability to |
| this is that traders can track the direction of the | | | | have control over purchases and sales gives traders |
| market rather than the success of individual stocks. | | | | more reassurance in the money they are investing. |
| This allows traders to take advantage of any | | | | Another benefit of e-minis is that trading takes place |
| movement up, down, or sideways in the market, and | | | | just during the day, so you watch the market, make |
| buy when they want and sell when they want. They | | | | your purchases and sales, and wrap up for the day. |
| are more in control, rather than just seeing how the | | | | The next day you start fresh, so you do not have to |
| individual stocks are doing on their own. | | | | worry about anything major happening overnight that |
| Like most e-minis, S&P 500 follows a quarterly | | | | affects your actions. |
| expiration cycle, which begins in the month of March. | | | | |