November 27, 2009

Details on Eminis

e-traded contracts

Eminis are future based trading contracts that represent a part of futures contracts institutional traders use. E-mini contracts are available on a wide range of indices such as the Nasdaq 100, S&P 500, S&P MidCap 400 and Russell 2000.The size of E-mini contracts is the reason behind them being cheap. So for example the very popular E-mini S&P 500 contract works as follows:  One point of the E-mini S&P 500 contract is worth $50, so for every open trade held, an one point movement in this E-mini index would result in $50 profit/loss, If 2 contracts are held then the index’s one point movement will cause a $100 profit/loss.

Eminis is used for trading for a number of reasons

Volatility: Volatility creates huge opportunity which makes it possible to make significantly more with small account balances.

The first reason is its affordability as it offers wide market exposure at low cost.

Easier to monitor: You only need to watch few indices as opposed to traditional stock picking where you have to scan through 100’s of stocks and still are exposed to single stock pre-announcement movement risk and accounting fraud risk.

Thirdly, this process has high liquidity because it is transparent and cannot be manipulated.

This process is 100% electronic and is really fast. You do not have to wait for a long time and make calls to your broker and this process is highly efficient!

Unlike single stocks which are susceptible to short selling restrictions E-mini trading can provide profits in both up and down markets

Tax free profits is another reason why E-mini should be used because the income from futures trading is completely yours.

Eminis are best suited to moderate live mentor training affairs

Are Eminis providing guaranteed income? No? definately a no!
Those who say they can give u teaching on trade markets or trade Eminis are probably lying. But at the same time you can find good trading mentors as well such as Mark Douglas and Van Tharp. These mentors have trained many good traders on stocks and commodities. Another famous mentor is Afshin Taghechian who have a very old experience on researching markets. The major purpose of Afshin Taghechian’s material is to target short term training and their work is applicable to all markets.  He invented the ‘TIMES’ trading system which is focused on Eminis and high volatility trading objectives.What could be the reason behind Mr Afshin Taghechian choosing only and only Eminis as his trade mentoring service among all other markets? Comparing Eminis with other markets is like comparing a very old car with no power steering to a brand new car which has all the features available and is best suited to today’s generation. This makes Eminis incomparable to single stocks!  Comparing the Eminis to other markets or single stocks is like comparing a modern driving instructor’s car to that of the 60’s, one that has no power steering, no ABS and young people are required to learn to drive and park and take risks in that car… why not just use the best option available

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