This article discusses emini futures and reasons for day trading in these futures. It also points to some basic concepts and ideas which the reader may want to read about before taking that plunge into this exciting, lucrative, but sometimes vexing corner of business and finance.? But first, back to the futures'.
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The Futures in One Day
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A future or, more completely, a future contract, is basically an agreement for two parties to buy something at a specific time in the future for a given price at present.? So futures trading really is about buying and selling these agreements.? Day trading in futures therefore means doing it within one market day, or the period between the opening and closing of the daily market of futures.
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Obviously, there are big and small futures.? Here, size refers to the value of a contract, calculated by multiplying its dollar value by the value of the stock index. Small futures, which are called eminis, are those for which the dollar value is only $50.? Eminis were invented for small traders who cannot afford the big futures.? Day trading in emini futures has thus become a specialized form of futures trading ' and a popular one, too.
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Why Day Trade in Eminis Futures
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There are many reasons for the popularity of eminis futures trading. This article considers the following the biggest and most important:
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- Low starting investment. This makes it attractive to those who are afraid to take huge investment risks, to small investors and to margin traders (those who buy and sell using borrowed money).? One can say that in this case, large gains can come in small packages.
- Quick results. The time line for the investment can be shorter than a day.? The investor quickly sees the trends and results and can immediately act.
- Better performance.? Eminis produce better results than other markets.? It is comparatively more profitable than options trading, which is about agreements to deliver something (e.g., shares) to a party in the future.
- Tractability and learnability.? Conventional techniques of analysis apply easily and these are not too terribly difficult to learn.? Nowadays, techniques and strategies can be learned online through tutorials and coaching.
- Diversity. Eminis futures encompass commodities, stocks, and foreign currencies.
About the Author:
Are you looking for the best? futures trading advice?? Visit? eminitradingstrategies.com today for more information!
Author: Jared D. Ingram
Source: http://freestockfeeds.com/876418-The-Top-5-Reasons-to-Day-Trade-Emini-Futures.html
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