S&P 500 Emini Futures Contract
The S&P 500 emini futures contract is a financial vessel that merges the qualities of the S&P 500 index fund with those of emini futures. This is regarded as one of the most advantageous investment vehicles out there today, and it has smart investors raving. The S&P 500 index is now one of the two leading indices of economic strength in the United States. The S&P index funds simply track (invest in) the stocks included in that basket. Eminis are the affordable, “common man’s” way of getting into futures contracts. Sound interesting? It should.
But, why would the S&P 500 emini futures contract be a better investment than an actual S&P 500 index fund? Why not go for gold ETFs? Why not be lured into the world’s largest single market, the Forex?
For one thing, the emini S&P 500 futures contracts come with a tight bid-ask spread (typically, one tick or $12.50 on each contract). The math says that this averages out to about .025% of the contract value, and that equals nothing other than one of the best spreads in the entire investment world. You’re not going to find this deal backed by such a stable underlying asset (the index) elsewhere. And remember, this stability is enhanced by the fact that the eminis are traded through the tightly regulated Chicago Mercantile Exchange (CME), where transparency is of paramount importance.
While you’re enjoying these impressive advantages, you’re not paying too much for them. You can get into the emini S&P 500 futures contract with less margin requirement than you can with the standard size futures, direct investment in the S&P 500 index, or the Forex market. What’s more, commissions on emini trades are, relatively speaking, very small. And, you can make trade at just about any time you desire to. The CME’s emini exhange is literally almost always open, day and night. You also enjoy all electronic trading right from the comfort of your own house or office. No trading pits, no market makers, no floor brokers.