Daniels Trading, a leading independent introducing futures broker, today announced it is offering clients the new CME Group Micro E-Mini futures contracts, welcoming the products as an opportunity for existing traders to expand their trading options and for new traders who want to enter the marketplace.
Micro E-Minis provide an expanded offering with smaller-sized contracts, providing all traders a simple way to access the equity index futures markets. At one-tenth the size of a classic E-Mini contracts, Micro E-Minis provide lower margins and require less cash to enter the market than the standard E-Mini contracts.
“These contracts are relevant because they make the transparent, anonymous, regulated opportunity of the futures market available to a much wider spectrum of traders,” said Daniels Trading’s Chief Sales and Marketing Officer Ken Packard. “They add increased opportunity and flexibility for existing traders and are a very accessible way to engage in markets that everyone is familiar with and many have an opinion on.”
The Micro E-Minis’ significantly smaller sizes and affordable financial commitment could be a game changer in futures trading. For example, in the S&P, where a trader needed to maintain a minimum account margin of over $6,000 to hold an E-Mini contract overnight, the requirement will now only be approximately $600 for the Micro E-Mini contract, which has a notional contract size of approximately $15,000 vs. $150,000 for the traditional E-mini. Stock index futures contracts connected to the S&P 500, Nasdaq-100, Russell 2000 and Dow Jones Industrial Average enable traders to make investments based on where they think the markets are headed.
“The exchange has made futures trading more accessible to the individual investor, particularly those who trade exchange-traded funds (ETFs) in their stock brokerage accounts,” said Daniels Trading’s President Glenn A. Swanson. “Many believe futures offers a more efficient contract vs. ETFs and you don’t need to pay margin interest to your broker. The nature of the futures contract itself is that there is embedded leverage. By cutting the size of the contract, the exchange is opening the marketplace to a broader group of customers. Additionally, the futures market allows the ability to easily sell short, and some traders can benefit from the tax rules associated with short/long-term profits and losses. What’s exciting to me about this product is that I really do think it could attract first-time entrants into the futures market.”
Daniels Trading advises those interested in the Micro E-Mini to select a broker with the best technology and educational resources in place to support their investment. They also emphasize the importance of selecting a broker with experience in the marketplace who can customize services and share the expertise needed to plan for both short-term trading objectives as well as long-term goals. Packard asserted, “With our robust technology, deeply experienced brokers and industry leading resources, Daniels Trading is uniquely positioned to assist in guiding new participants in the market.”
For existing traders, Swanson suggested that the new contract would make it possible for them to re-examine their strategies and current activity levels. “For those traders who saw their accounts drop, the Micro E-Mini will make it possible to trade once again, possibly without committing additional resources,” he said. “Additionally, the new contract will also allow traders to expand their type of trading engagement. Day traders may now be able to trade in windows that are not quite so narrow, which may provide greater flexibility on their strategy.”
Although it is hard to predict how many new or dormant traders the Micro E-Mini will attract, strong interest is likely, given the lower margin requirement with the same benefits of 24-hour trading, no management fees, and portfolio diversification.
“The CME did not know what would happen when they launched the E-Mini in 1997,” added Packard. “The exchange introduced what would arguably become the most popular contract they have ever offered, certainly from an individual trader’s perspective. The new contract has been a long time in the making and the opportunities seem endless.”
More information on the Micro E-Mini futures contract offered by Daniels Trading can be found at https://landing.danielstrading.com/micro-eminis.
About Daniels Trading
Daniels Trading is an independent introducing futures broker located in the heart of Chicago’s financial district. Established by renowned commodity trader Andy Daniels in 1995, Daniels Trading is built on a culture of trustcommitted to the firm’s mission of independence, objectivity, and reliability. For more information, please visit www.danielstrading.com or call 800-800-3840.
SOURCE Daniels Trading