Major indexes offer a diversified way to play macro market moves.
The DOW, S&P 500 and Nasdaq are common investments using DIAmond’s , SPYders and nasdaQQQ’s as vehicles. The advantage is lessened individual stock risk by having a broad basket. These ETF’s trade just like stocks and can be bought or sold during market hours.
Stock index futures trade on the other hand trade nearly 24 hours to offer opportunity whenever market moves occur. MORE IMPORTANTLY with futures open around the clock, anytime entry and exit trigger execution ensures implementation of a disciplined trading plan.
The gap risk compared to the equities markets may be less, but the extreme leverage must be respected and managed. Handled properly, stock index futures are strong and powerful selections.
E-mini DOW Futures
Started trading in 2002
Most widely recognized index, 30 Blue Chip stocks, weighted by stock price.
Value $5 per point, 18,000 Dow translates into controlling $90,000 per contract.
$4500 Deposit requirement …20 to 1 Leverage
E-mini S&P Futures
Launched in 1997
Broad 500 company index, professionals’ market barometer, weighted by capitalization.
Value $50 per point, 2100 S&P translates into controlling $105,000 per contract.
$5000 Deposit requirement…20 to 1 Leverage
E-mini Nasdaq Futures
Launched in 1996
Top Tech 100 index, no financial stocks, weighted by capitalization.
Value $20 per point, 4700 NDX translates into controlling $94,000 per contract.
$5000 Deposit requirement…20 to 1 Leverage
A combination of liquidity, global opportunity availability and LEVERAGE make stock index futures a great choice for disciplined traders. These futures contracts can be used to hedge a portfolio or to speculate on steroids…
