E-mini S&P 500 Contract Specifications: Everything You Need to Know
The E-mini S&P 500 futures contract is one of the most popular trading instruments in the financial world. It is a stock market index futures contract that tracks the performance of the S&P 500 stock market index, which is composed of 500 large-cap American companies listed on the New York Stock Exchange (NYSE) or Nasdaq stock exchange.
If you`re interested in trading E-mini S&P 500 futures, it`s essential to understand the contract specifications, including the contract size, tick size, trading hours, and margin requirements. Here`s what you need to know:
The E-mini S&P 500 futures contract trades on the Chicago Mercantile Exchange (CME), and each contract represents a notional value of $50 times the current index level. For example, if the S&P 500 index is at 3,000, the notional value of one E-mini S&P 500 futures contract would be $150,000 ($50 x 3,000).
The tick size is the minimum price increment that a futures contract can move. For the E-mini S&P 500 futures contract, the tick size is 0.25 index points, which is equal to $12.50 per contract. This means that for every 0.25 index point move in the S&P 500 index, the value of one E-mini S&P 500 futures contract will move by $12.50.
The trading hours for the E-mini S&P 500 futures contract are from Sunday to Friday, 5 pm to 4 pm CT (Central Time), with a 60-minute break each day at 4 pm CT. Trading starts on Sunday evening in the U.S. and continues until Friday afternoon. Therefore, traders have an opportunity to take advantage of news and events that occur outside of U.S. trading hours.
Margin is the amount of money that traders must deposit with their broker to hold a futures position. For E-mini S&P 500 futures, the initial margin requirement is currently $13,750 per contract, with maintenance margin set at $11,000 per contract. However, margin requirements may vary depending on market volatility and other factors.
Trading E-mini S&P 500 futures can be a lucrative option for traders who want to take advantage of market volatility and potentially earn high returns. However, it`s important to keep in mind the risks and volatility that come with futures trading. By understanding the contract specifications and managing your risk properly, you can trade E-mini S&P 500 futures with confidence.