Ticker symbol: ES
Contract size: $50 X index
Tick size: .25 index points ($12.50 per contract)
Contract Months: March,June,September,December.
The Emini S&P 500 futures contract was spawned to allow investors to participate in trade of the benchmark S&P 500 futures at a lower margin required. The S&P 500,long the benchmark for stock market indication with its representation of many sectors of the market, has been a popular contract among speculators of stock trade by index.
With its point value at a high X`s price of the index, it has been out of the reach for smaller speculators with its considerable high margin requirement.Hence the introduction of the Emini S&P 500. Electronically traded, It has a point value X`s index of $50 as opposed to the S&P 500`s $250 X`s index value.
This means a lower margin is required to participate in trade with the Emini S&P 500 than with the S&P 500 and here is an example.
If the S&P trades at a 1300 index level, then its point value is X`s the index, putting a holding of the contract at $325,000 of leveraged futures.At $325,000, the performance bond, or margin as more commonly known will be greater and this is out of the reach of many speculators or investors.
The Emini with a $50 X`s index at the same index level trade of 1300 would leverage $65,500 of holdings, requiring a much lower margin required with a broker since the Mini is 1/5 the size of the S&P 500.
For more complete information on the Emini S&P 500 contract
visit the Chicago Mercantile Exchange`s website by clicking the link below. There is a complete Emini S&P 500 resource center. Email me at :
The Chicago Mercantile Exchange