Micro E-mini futures took the trading world by storm when they launched in May of 2019. These small-but-mighty contracts offer exposure to 4 major US stock indexes with reduced costs and with greater trade flexibility. This allows new traders to start small and increase trade volume as they gain experience in the markets.
Smaller Contract Size
At 1/10th the size of standard E-mini contracts, Micro E-minis require a smaller financial commitment. The smaller contract size also means greater control over order quantity and risk management.
Micro E-minis provide access to 3 different sectors of American equity markets and can help diversify exposure. Flexibly access the following market sectors with the micro-sized contracts:
- Large capitalization exposure: Micro E-mini S&P 500 (MES) & Dow (MYM) futures
- Small capitalization exposure: Micro E-mini Russell 2000 (M2K) futures
- Technology exposure: Micro E-mini Nasdaq (MNQ) futures
Fine-Tune an E-mini Position
Since Micro E-mini futures are fully fungible with their E-mini counterparts at a 10:1 ratio, they present additional flexibility to E-mini traders. Fine-tune an E-mini position as market conditions change or offset a position to reduce risk selecting whichever contract best fits your trading goals.
Go Long or Short
Similar to traditional E-minis, the Micro futures offer the ability to trade markets long or short with no short-selling restrictions. If traders anticipate a market’s value to increase, they can “go long.” On the other hand, traders who expect markets to fall can sell a position and “go short.” This flexibility of trading both sides of the market is a noteworthy benefit of futures trading.
Please note: Trading Micro E-mini futures carries the same risks as trading full-sized E-mini contracts and only risk capital should be used.
See why more traders are choosing Micro Futures:
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