What are E-mini futures? – Trading E-mini Futures for a Living

Institutional as well as retail traders widely trade Emini futures products. Irrespective of what you’re inclined to invest in, be it energies, metals, or equities, the eminis are a whole gamut of options.

trading emini futures for a living $5000 capital

What are E-mini Futures?

The E-mini or e-minis is an electronically traded futures contract that tracks the S&P 500 stock market index. It represents a fraction of the value of a corresponding standard futures contract.

The attractive features such as optimal liquidly, small margins, and volatility continuously are a few salient characteristics that make emini futures attractive.

Now the moot question is, Is trading emini futures for a living reliable as a means of living?

The answer to this query is according to who you’re discussing the matter with. This is nothing unusual concerning market-related entities. It’s important to note that eminis may offer you the best opportunities provided you have the right attitude to do the business, a sound strategy, and experience-based guidance. All these factors go together to create opportunities for yourself, which you could leverage. Now the central question is how to move ahead?

Read more about Emini Futures Trading Strategies

How much is a one E-mini futures contract?

E-mini is a futures contract worth 1/5 the value of a standard S&P 500 futures contract. The value of the E-mini is $50 x S&P 500 index value. The tick size is 0.25, and the tick value is $12.50.

Trading E-mini Futures for a Living

This chapter is the most important in this article. All traders need to know that the best traders at the end of the year have 20%-25% profit! E-mini Futures have great liquidity, nice trends, but you can not double your money every year. If you risk 1% to 2% per trade at the end of the year, you will have from 15% to 30% profit if you are a stable and good trader.
There are some unwritten rules. If you are a daily trader and trade often and a lot of, you will have bigger draw-downs, you will earn and lose money faster. If you position a trader, your profit will grow slowly, but you will be more stable. In both cases, you can not risk a lot. E-Mini S&P is one of the most-traded contracts on the market. Statistics show more bullish days than bearish because this instrument is correlated with top USA companies’ development.

What happens when an E-mini futures contract expires?

E-mini futures contracts expire every quarter on the third Friday of March, June, September, and December. When someone buys an E-mini futures contract and holds it till expiration, the contract will be settled according to the futures contract’s settlement parameters. Every futures contract typically specifies how the contract will be settled on expiration, either with cash or by physical delivery.

There are 3 solutions when E-mini futures contract expire:

  • Offset the position – close out the trade
  • Let the contract expire and enter the delivery process.
  • Roll the contract from the current month to a future expiration date

Usually, Micro E-mini futures traders settle in cash against the official open price of the respective index.

Orient your resources to your goals

Before you move to start an account with a brokerage firm and start trading, plan your available resources – you must orient them with your ulterior goal. In this context, you need to decide concerning:

Money: how much you need for the trade and wish to earn?
What are the amounts of time and capital at your disposal?

You need to analyze if trading in emini features is good enough to bring a living for you. The answer should be meaningful. Be ruthlessly honest when deciding what you have to do and what you want the market to bring you. Are you expecting $200,000 a year? Or $60 to be able to pay your expenses?

Thus, it is significant to decide first what is acceptable to you. Then you need to make your resources for the trade. It would help if you exercised logic in distributing money and time to any trading enterprise. The resources that you spend must tantamount to your financial goals.

If you can spend only a couple of hours a day and have $5,000 as risk capital, getting $250,000 in a year is pretty hard.

It would help if you took note of the point raised here. The point is the resources that you have should be able to realize the financial goal. If the plan fails, you must bring changes in the resource-goal.

Choosing the right product

The good thing about emini futures is that you get a range of trading strategies, options, and products, including short-term intraday plants, longer-term investment plans, and swing trading. By putting your money in emini futures, you will get an opportunity to perform their favorite methodology in the marketplace.

The most popular eminis targets trades are equity indices based ones. They are so popular with individual traders that they continuously take out a living thanks to the liquidity and volatility.

You can easily determine the product that suits your financial temperament. If you’ve expertise in trading blue chips, then the emini DOW will be the best. Further, If you’ve expertise in forex trading, emini Euro FX is a great opportunity. In either case, low margin requirements and the limited commission offered by brokers for emini opens a whole range of opportunities.

A good start for your trade

Gaining stability in the current state of the market is a gigantic achievement with, of course, no definiteness and financial safety. The eminis trading is ruthless, and you must be extremely cautious.

How to get started Trading E-mini Futures for a Living?

Orienting your resources and goals with a workable strategy to enter the market could be challenging. A great place to start learning to trade emini futures for a living is excellent trading books. Start learning from the books, then try demo accounts, and then start live trading.



Igor has been a trader since 2007. Currently, Igor works for several prop trading companies. He is an expert in financial niche, long-term trading, and weekly technical levels. The primary field of Igor's research is the application of machine learning in algorithmic trading. Education: Computer Engineering and Ph.D. in machine learning. Igor regularly publishes trading-related videos on the Fxigor Youtube channel. To contact Igor write on: igor@forex.in.rs

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