Since the late nineties, online trading has increased exceptionally since people began utilizing their computers via the Internet to take charge of their financial futures. All forms of trading exploded beginning with the stock market since this was the market in which most people had a working knowledge. As time passed, individual traders and investors learned more about other markets, including the stock options market, currency markets and the emini index futures markets.

Emini contracts have become very popular with market participants seeking a short term method for obtaining daily profits from the futures markets. Before the introduction of the emini contract in 1997, only the full-sized emini index contract were available which eliminated many people from trading index futures contracts since margin requirements were much more than everyday people afford. When the mini futures contract was introduced, margin requirements were greatly reduced, opening the futures markets up to people with limited funds, allowing them access to one of the best trading instruments for short term profits.

Stock Traders Flock To The Emini Markets

In the early part of the 2000’s, the NASD increased the minimum account requirements for day trading stocks to $25,000 which eliminated many day traders from participating in the stock market. Seeking out other financial instruments in which to trade short term, day traders moved over to emini index futures because of this new pattern day trader rule and found a new home in the futures market. They soon discovered emini day trading reduced the number of after market hours spent researching sectors, stocks and stock charts in order to locate possible stock trade set-ups before the financial markets opened each morning. When trading eminis, the trader is only focusing on one market and one instrument which will be traded everyday, so there is no need for hours upon hours of research and scanning through hundreds of charts.

Emini Futures Trading Is Offered On All Three Major Indexes

The three major indexes all offer a emini contract: The S&P 500, the NASDAQ and the Dow all have mini sized index futures contracts available to trade. The Russell 2000 also offers a emini contract and is growing in popularity as well. The S&P 500 contract is known as the ES contract and is traded more heavily than any other index futures contract. The ES contract is the point of the spear when it comes to market direction and is why no matter what market you are trading short term, it is wise to keep one on these futures at all times. Whichever way they go, up or down, the market is sure to follow. Even if you choose to trade a different mini contract, it is highly recommended the ES futures be employed as one of your trading indicators since they so heavily influence the financial markets on a daily basis.

The S&P 500 ES Contract

The ES futures contract is a $50 multiplier which means with each point or tick up or down, the value of the contract increases or decreases fifty dollars. Depending on if a trader is holding a long or short position will determine if the traders has a profit or loss. This ES trades in quarter points with the value of each quarter point being $12.50.

The NASDAQ Emini Contract

Another very popular index futures contract is the NASDAQ emini or NQ. Tracking the top stocks on the tech heavy NASDAQ stock exchange, the NQ futures have a multiplier of $20 with a trading increment of $5 for every quarter point. Although not as widely utilized as it’s bigger cousin the ES, NQ trading still offers an excellent short term trading instrument for traders seeking short term profits from the financial markets.

DOW Emini Contract

The Dow Emini or YM contract as it is known, was introduced later but is giving the ES some serious competition for popularity among index futures traders. Tracking the DOW stock exchange's top stocks, the DOW emini does not trade in quarter points as does the ES and NQ having a multiplier of $5, trading in whole points with each tick of the market, up or down, equating to a profit or loss of $5. Since it trades with a smaller multiplier and is easily traded, the YM futures are very popular among traders new to the emini futures markets.

With enough volatility and liquidity to profit several times during each daily session, it is understandable why emini contracts have become the instrument of choice among those searching for ways to profit short term. Successful traders most often use a trading system that fits their personality, employing techniques which have shown to be profitable. Some use moving averages in tandem with indicators and oscillators while others will only use pivot points with major and minor support and resistance levels. Some will use the traditional day trading methods while others will execute many trades daily employing a scalp trading methodology. Whatever your chosen method for short term trading, emini futures offer an excellent way to profit daily in the futures market.

It is recommended for those new to the futures markets to first seek out a mentor such as veteran trader or a reputable emini trading room on the Internet and first acquire an emini education to learn market dynamics and characteristics of the internal futures market. Index futures are highly volatile and require a certain level of skill to be profitable and should be approached with discipline and a working knowledge.