Have traded equities & options for a very long time, yet I cannot get my head around this, I have read investopedia, looked through CME & for the life of me, it's not sinking in? anyone that is trading mico-e-mini help with Q&A or examples of trading account set-up, trade/cost & margins? https://www.cmegroup.com/trading/equity-index/us-index/micro-e-mini-futures.html Thanks
I don't get what your question is. Basically they are exactly like the mini's except 1/10th the size. The exchange margins are on the CME site. The commissions are tiny and the liquidity is pretty good lately.
@Real Money thanks. my posts/question's aren't trolling, its a straight up real honest question, I need the education help & please dont send me to a link or youtube tutorial appreciate all responses & help ... thanks I must be totally thick, I just dont get it, please anyone responding be patient with my questions that I hope can be answered. I really do need a simple walk though of what to do, how to do, how to do it in simple steps. after I set up my account to trade futures in this case just the micro's, from the CME link above I'm now 'not ready - because 'I'm going in blind' to trade MNQ. Q's - me thinking like an option guy, can I buy or sell a june contract, if so, what are the number of contracts or whatever they're called (by name) and the amount in numbers? - is there just the one strike price as shown in CME last at $1225.30, is that the one future price that I am buying/speculating on? - whats my cost per ??? and how many minimum or maximum can I buy or sell? - are these tradeable to expiry - daily or do I wait till expiry on the basis the price will be higher than $1225? - similar to options, on the basis the $1225 stays at that price, is there time decay in the June contract price to expiry? - what is the typical margin buying e-micro futures? - what is the potential loss, does the broker call the margin? -
Your problem is you do not understand what are futures contracts, what they represent, how they are priced and how an individual can profit or loss from them. You need to buy a Dummies book (that is not a swipe at you, its a real thing). https://tinyurl.com/y7eomo3v You suggest you are an options guy... Difference number 1... An option gives the RIGHT to buy or sell an underlying at a specified price on (or before) a specified date. A futures contract is a CONTRACT to buy/take possession or sell/make delivery of an underlying at a specific price on a specific date in the future.
Thanks for all the responses, special thanks to Big AAPL & Tiddlywinks. sorted, I'll go away & try harder
Just in time for a person like you...Start here. https://www.cmegroup.com/futures_challenge/challenges/276/landing Go into it knowing one thing...Your futures trading platform will be WAAYY better than the CME's shitty emulator.
Basically, don't think of futures contracts as similar to options contracts. Think of them as extra-high leveraged ETFs. Then, each 25c move in the underlying index costs you anywhere between $1 and $15, depending on the contract. So -- you can buy 1 contract of the e-mini that tracks the S&P 500; you buy a contract, and every dollar move in the S&P now makes that contract $50 more/less valuable.