Micro E-mini VS E-mini SP – Which One Should You Be Trading?
# Micro E-mini vs E-mini S&P: Which Should You Trade?
## Introduction
Hello, everyone. This article will cover the differences between micro E-mini and E-mini S&P futures and help you decide which one to trade. If you’re new to trading, make sure to download the free trading guide from daytradetowin.com to start your trading journey. Remember, trading carries risks, so always consult with your broker before trading live.
## Understanding the Difference
Take a moment to compare the charts of micro E-mini and E-mini S&P futures. While the signals may look similar, there are key differences in the underlying contracts. The E-mini S&P 500 (ES 09-20) represents the classic E-mini contract, while the micro E-mini futures (MES 09-20) are one-tenth the size of the E-mini, making them more affordable for traders.
## Trading Options
The CME Group, where E-mini and micro E-mini futures are traded, offers a range of asset classes including agricultural products, currencies, energy, interest rates, metals, and stock indexes. By visiting cmegroup.com, you can access information on micro E-mini futures for various indexes like NASDAQ, Russell, and Dow Jones industrial average.
## How to Access Markets
In platforms like NinjaTrader, you can easily access different markets by typing in the desired instrument. For example, typing « MSNQ » will bring up micro mini NASDAQ futures. Real-time data loading allows you to analyze signals and make informed trading decisions.
## Understanding Price Movements
In E-mini S&P 500 futures, each tick represents a $12.50 increment, with four ticks making up one point ($50). On the other hand, in micro E-mini futures, each tick is worth $1.25, making one point equal to $5. By understanding these price structures, traders can calculate profits and losses more effectively.
## Conclusion
Micro E-mini futures offer a more affordable and accessible option for traders compared to traditional E-mini contracts. With lower tick values, traders can engage in these markets with smaller capital requirements. Understanding the differences between micro E-mini and E-mini S&P futures is crucial for making informed trading decisions and maximizing profitability in the futures market.
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