| Emini futures contracts have become a trading | | | | The answer to the first question is: that depends. |
| instrument of choice for many traders, especially day | | | | Before I will elaborate on it, let me first tackle the |
| traders. The field that barely existed only 10 years ago | | | | second question in greater detail. |
| is now booming with new traders joining the older ones | | | | There are quite a few other emini futures contracts |
| every day. With many brokers, their numbers growing | | | | among US stock index futures that attract some |
| as well, dedicated primarily to serving this class of | | | | attention among day traders. One of such contracts is |
| traders, this trend is likely to continue. | | | | the emini contract for the Dow Industrials futures, |
| Emini, interchangeably called e-mini, futures are smaller | | | | whose symbol is YM. Its ticks are smaller, only $5 per |
| contracts of more established pit-traded futures. Their | | | | tick, compared to $12.5 for ES. There are also |
| smaller size means that their margins are smaller too, | | | | contracts such as NQ or TF, both of which have |
| which obviously appeals to many retail traders, folks | | | | smaller ticks than ES. |
| who can spend only a few thousands or so dollars for | | | | It is because of this smaller tick size that YM can be a |
| this business. This is what the mini aspect of these | | | | better trading vehicle for new traders. The smaller the |
| contracts is about. Moreover, unlike their grown-up | | | | size the finer your entry can be, which in turn means |
| brethren, e-mini futures have always been traded | | | | that you are more likely to squeeze out profits, at least |
| electronically, which is what "e" in their name stands | | | | tickwise, not necessarily dollarwise. This and the fact |
| for. Because of that, they can be relatively easy to | | | | that fills seem to be better, easier to get, than in a very |
| trade over the Internet. | | | | competitive ES, are the main reasons why YM can be |
| A decade or so ago, there was basically only one | | | | a better choice for the first emini market to try your |
| emini futures contract that one could consider for | | | | luck in. The same is pretty much true about TF, the |
| trading. It was ES, the emini futures contract for | | | | emini futures for the Russell 2000 index. It too can be |
| Standard&Poor 500. The pit contract for this | | | | used as your first emini futures contract, its tick size of |
| futures market has been around for much longer and | | | | $10 being only a bit smaller than that of ES, but with |
| had been well established by then, probably better than | | | | pretty good fills, nevertheless. |
| a futures contract for any other US stock index | | | | On the other hand, ES is more dynamic than YM, so |
| market. It was this popularity of the pit contract that | | | | you may find out that squeezing out only 3 ES ticks |
| made many traders consider its emini version. That's | | | | ($37.5) is easier than 5 YM ticks ($25) and for this |
| how the trading volume of ES started to grow and | | | | reason ES can be better than YM, although hardly |
| today is the biggest among the futures for US stock | | | | better than TF. |
| index markets. | | | | To summarize, while ES is still the most popular |
| Many new emini traders start their careers with this | | | | contract among emini futures traders, including the |
| contract convinced that its dominant volume will help | | | | beginners, whose popularity guarantees good smooth |
| them in trading. | | | | trading due to the great trading volume of this market, |
| But is it really the best emini futures contract to launch | | | | it also makes a lot of sense to launch your emini |
| your trading career with? Are there other emini | | | | trading career with YM or TF, whose volumes |
| contracts that can be more appropriate for the | | | | continue to grow. |
| beginner to this field? | | | | |