What is the Difference Between E-mini and Micro E-mini?
Difference Between E-mini and Micro E-mini
E-mini and Micro E-mini are both types of futures contracts that allow traders to gain exposure to various markets. Here are the key differences between E-mini and Micro E-mini contracts:
1. Contract Size:
– E-mini futures contracts have a smaller contract value compared to their full-size counterparts. They usually represent either 10 or 20 times the size of a single underlying contract.
Micro E-mini futures contracts are even smaller versions of E-mini contracts. They are 1/10th the size of a standard E-mini contract, requiring less cash for entry into the futures market.
2. Tick Increments:
– Both E-mini and Micro E-mini contracts follow the same tick increments as their respective counterparts. The tick size determines the minimum price movement of the contract.
3. Trading Platforms:
– E-mini and Micro E-mini contracts trade on the CME Globex trading platform. Micro E-mini stock index futures are also available on specific trading platforms like Schwab’s StreetSmartCentral and StreetSmart mobile trading platforms.
4. Accessibility:
– Micro E-mini contracts are designed to be more accessible to a wider range of traders, including smaller investors and retail traders. They offer a more affordable entry point into the futures market compared to E-mini contracts.
5. Trading Volume:
– Micro E-mini contracts have a lower trading volume compared to their E-mini counterparts. The volume on Micro E-mini contracts tends to be around a quarter of the trading volume of E-mini contracts.
6. Delta and Exposure:
– Micro E-mini contracts have a delta that is 1/10th the size of E-mini contracts. This means that 10 Micro E-mini contracts provide the equivalent delta or exposure of one E-mini contract.
In summary, E-mini and Micro E-mini contracts differ in terms of contract size, accessibility, and trading volume. Micro E-mini contracts are smaller in size, more affordable, and designed to cater to a broader range of traders.