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What is the Emini S&P 500?



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If you are at all familiar with eminis or day trading in general, I am sure that you have seen the term Emini S&P 500, but what is it, and what does it mean? Emini S&P 500 refers to the electronically traded futures contracts on the Chicago Mercantile Exchange (CME) that represent a portion of the normal futures contracts...

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If you are at all familiar with eminis or day trading in general, I am sure that you have seen the term Emini S&P 500, but what is it, and what does it mean?

Emini S&P 500 refers to the electronically traded futures contracts on the Chicago Mercantile Exchange (CME) that represent a portion of the normal futures contracts

For example, the E-mini S&P 500 futures contract is one-fifth the size of the standard S&P 500 futures contract.

The S&P 500 index is the best known of the many indices owned and maintained by Standard & Poor's. S&P 500 refers not only to the index, but also to the 500 companies that have their common stocks included in the index itself.

Some of the many advantages to trading E-mini S&P 500 contracts include greater liquidity, affordability for individual investors and around-the-clock trading since emini contracts are traded electronically.

What this means to the beginning investor is that eminis offer a method of getting into the trading market without having to pay for the full contract price of major stocks. Instead, investors trade a fraction of the overall index such as the S&P 500 at a much lower trading price. Investments are made based on the mobility and volatility of the index and are usually traded daily.

The stocks included in the S&P 500 are those of large publicly held companies that trade on either of the two largest American stock market companies; the NYSE and the NASDAQ. Companies within the S&P 500 index include such notable leaders as Apple, Microsoft, Exxon, Procter & Gamble, General Electric, Bank of America and other business giants.

After the Dow Jones Industrial Average, the S&P 500 is the most widely followed index of major American stocks.

 

Resource: By Jeffry Palmer

Jeff Palmer is the Internet Marketing Manager for 21st Century Academy who offer a free Emini DVD to anyone interested in learning more about eminis and emini trading which can be downloaded from 21st Century Eminis




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