what is an e-mini? (lol i know, call me a newb)

Discussion in 'Index Futures' started by Gordon Gekko, Aug 19, 2002.

  1. first of all, i've been trading for 3+ years...but i've just been trading stocks. i've heard of e-minis a lot, but i've never really understood what they are.

    remember what your teacher said....there's no such thing as a stupid question! lol

  2. I'm pretty sure that a mini contract is about 1/5 of a regular contract and the 'e' stands for electronic entry as opposed to a floor trade. Call me newbie too if ya wanna. That's what Iv'e been calling myself for a couple of years.:)
  3. plum is correct.. they are electronically traded mini (referring to the margin requirement) contracts on S&P500, nasdaq-100, and dow indexes. i don't know of any other e-minis.. the reason they are so popular (or getting that way anyway) is:

    • high leverage + high liquidity. you can easily make/lose 25% in a day
    • they all trade on globex (or cbot) -- no multiple markets
    • no downtick rule
    • better tax treatment. file your total P/L and pay 40% as long term gains and 60% as short term gains.


    Gekko, no question is a stupid question. (Except yours):D :D :D

    Don't make people try and explain it in this thread just go to


    and read all about it. You will come back knowing more about e-minis than most people on this board.:)