Saturday, 3 September 2011

Why E mini Trading Is So Popular!


E minis are futures contracts that are electronically traded. They are contracts of the CME or Chicago Mercantile Exchange. They are the smaller part of the bigger futures contracts of the CME. These are designed in this smaller manner to attract the small investors who have less amount of capital money. They can invest here easily and make quick profit. Eventually the large professional investors also get attracted to this trading. First was the S&P500 amongst the various kinds of E mini in dices. Then there are also NASDAQ 100, Russell 2000 and S&P Midcap400.
The causes of popularity of the E mini futures are many. The size of the contracts is five times smaller than the original large contracts. So it allows small investors to invest and earn profit. So the people who had little money and had nothing to with it can come forward and make investments.
Another reason for its popularity is the volatility. This also creates opportunities of trading for a lot of traders. The E mini future contracts are affordable and volatile and thus popular. Monitoring is also very easy.
High liquidity is another reason for its popularity. This increases the transparency of the trading. This opposes the market controlling by some big brokerage firms.
Completely electronic trading of E mini futures trading makes it faster and more popular. Previously you had to call your broker; you sometime had to hang around for like half an hour. By this time the price may go down and your profits can be replaced by losses. On the other hand electronic trading is faster. The Globex supported E minis with their technological support and makes trading faster.
Securities & Exchange Commission (SEC) imposed restrictions on short selling. But this is only applicable for the single stocks. E mini trading is out of this restriction so when the market is down you can sell the contracts & follow your other strategies in order to get out of the trouble.
The tax is low in the E minis. So you can keep the profits of yours. This makes it even more popular as people feel frustrated when large amount of their income is taken by the government as tax.
For live counselor training programs it is very suitable. This is not a source from where you can get money effortlessly. You have to know the business first. There are some best trading mentors like Mark Douglas & Van Tharp. They have educated large number of traders in their investments. You are to learn from these mentors in order to do well in your business. Also there are mentors such as Afshin Taghechain. He spent his whole life researching the markets. He focuses on the E mini trading. The point is there is lot to know about the market & then you can think of making profit from your trading.

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