Since eMinis are like options on futures, isn't it possible to trade them on an out-month instead of waiting by the computer for a two-tick move?
For instance, if I think NASDAQ is going to be 1,200 by the middle of November, can't I use November or December expirations, buy them now while they are relatively cheap?
2006-07-30 14:55:23 · 4 answers · asked by Anonymous in Business & Finance ➔ Investing
Yes, they're just mini futures contracts (they are not options on futures).
E-mini's trade just like the full size contracts, except the dollar value is smaller and so are the margins. Everything you do with a futures contract you can do with a mini contract, you'll just make/lose less money had have lower margin requirements.
2006-07-31 01:42:38 · answer #1 · answered by 4XTrader 5 · 0⤊ 1⤋
The e-mini generally refers to the S&P futures contract. They are not "options" or "options on futures," but just futures (there are options on futures, but that's a different subject). There is also a Dow mini future, and a Nasdaq mini and a Russell 2000 mini. Notice, none of the others are called "e-mini," but they are all futures contracts.
You can buy a futures contract one year out, but the volume will be thin. Not a problem if you are holding for the long-term.
What you're not considering is the leverage on a futures contract. You can hold it as long as you like (until expiration), but you can't hold through a 20 or 50 point decline in the e-mini like you do a stock; it would wipe you out, and you may end up owing them your house. The e-mini fell from 1340 in May, to 1230 in June -- 110 points.
The futures were designed as hedging vehicles, and this would be the only long-term usage.
What you should look into is trading the ETF's, which are unleveraged. The S&P ETF is called the SPYDER (SPY). The Dow ETF's are the Diamonds (DIA). You can hold these as long as you like, just like a stock. And you can short them w/o any short-sale rule. Or check out the sector ETF's. Sell the weak ones and buy the strong ones.
2006-07-30 18:04:11 · answer #2 · answered by dredude52 6 · 0⤊ 0⤋
Penny stocks are loosely categorized companies with share prices of below $5 and with market caps of under $200 million. They are sometimes referred to as "the slot machines of the equity market" because of the money involved. There may be a good place for penny stocks in the portfolio of an experienced, advanced investor, however, if you follow this guide you will learn the most efficient strategies https://tr.im/fb19f
2015-01-25 00:09:21 · answer #3 · answered by Anonymous · 0⤊ 0⤋
the answer is YES you can buy or sell (short) them till they expire
2006-07-30 17:47:42 · answer #4 · answered by darren 2 · 0⤊ 0⤋