e-mini or regular

Discussion in 'Index Futures' started by Canuck709, May 28, 2009.

  1. Wondering if any of you have any thoughts as to whether is better to trade the e-mini or the original futures contract. As I see it using the ES as a proxy the e-mini allows for greater participation due to its margin requirements but the bigger contract offers greater leverage (based on the same intra-day margin requirements). Perhaps this changes from fbroker to broker (I am using IB).

  2. Imba


    big hungry tigers dont give a F where to rape little rabbits... inside big cage or in a smaller one =)

    If the main thing which you are thinking about is "where the best possible leverage is?"
    Well, i can bet, you are the "rabbit" in that game really.

    And i dont see real idea to trade big SP, otherwise only if you have miltimillion accounts loaded.
  3. Wow....it was just a question to ensure i wasn't missing anything...u know...keep learning & keep an open mind.....

    for the record if I have the funds to by the big contract wouldn't that imply i have already been a tiger in my life?

    Just a thought.

    Now back to my cage.........

    p.s. If i can consistently catch a 4 or 5 point move why wouldn't I want to benefit from the additional leverage in the big contract? Same underlying vehicle , same entry, same exit just more rewards for putting up a bigger depost. Or more appropriately better return for the same amount of risk.
  4. Eric215


    No offense to Canuck709 but that was a funny statement, lol, with some truth to it.

    In all seriousness though, if you are asking that question you should start with the mini. I could be missing something, as I have never traded the big one, but the only major differences would be the different execution platform and the big contract trades in dimes, not quarters. I believe leverage wise they are the same.

    EDIT: Oh and I almost forgot, transaction costs will be cheaper for the larger contract. It is cheaper to trade 1 big contract then to trade the equivalent of 5 minis.
  5. No offense taken. It was funnny and I do appreciate other peoples passion (even when directed at or against me).

    Good point about the commission.
  6. seadog


    The big difference is slippage. Both have some, the big contract slippage can be much larger.Especially in a fast market.

  7. Most people on ET are jerks, OP. SOrry to tell you.

    I actively trade the MINI; sure it's smaller but there's AWESOME LIQUIDITY & I don't get much slippage.

    There's no leverage advantage as the margin for SP is 5x the margin for ES.

    I'm a former comm. trader who's taken a great liking to the EMINI S&P.