Emini Day Trading For Novices
When we are looking at a complicated concept for day traders, it is important to take things slowly. If you are a complete beginner to this whole concept, you will no doubt have no idea what to expect. We will explain everything for you here so that you can get a brief guide to what emini day trading is all about.
What is an Emini?
First of all, we must explain everything about the eminis themselves. They are defined as an electronically traded futures contract, and they represent a certain percentage of a standard futures contract. They are very good for beginners to the day trading game. This is true for a number of reasons. First of all, they will allow round-the-clock trading. They also offer low margin rates, and the volatility and liquidity rates are also low. There are a number of methods with which you can trade them, but be aware that they are very popular. You will need to work hard to beat your competition.
Where Did Eminis Begin?
The first project considered to be an emini was introduced on 9 September 1997. This was in the Chicago Mercantile Exchange, where the emini S&P 500 was launched. It was a smaller version of the S&P 500. The introduction of this product allowed more participation in the futures markets of the stock index. This was because it was only trading at 1/5 of the value of the full contract. Individual investors and traders were much more able to afford it. That is why the concept of emini day trading has continued to be so popular today. There are a range of eminis to choose from on the market. The most popular options include the emini Dow, and the emini NASDAQ-100, as well as other big names.
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