CME Group is launching Micro E-mini futures contracts - a new smaller-sized suite of futures contracts for four major indices: S&P 500, Nasdaq-100, Russell 2000, and the Dow Jones Industrial Average. These contracts allow market participants an efficient and cost-effective way to gain exposure to four key indices.
All four of the Micro E-mini futures are 1/10 the size of their respective E-mini futures counterparts – allowing all traders futures exposure without the notional constraints of the larger contracts.
For example, while a single E -mini S&P 500 futures contract has a value of $50 times the agreed upon E-mini futures price – the Micro E-mini S&P 500 futures contract has a value of $5 times the agreed upon price. The Micro E-mini contract multiplier varies by product.
While both the Micro E-mini S&P 500 and Micro E-mini Russell 2000 have multipliers of $5, the Micro E-mini Nasdaq-100 has a $2 multiplier, and the Micro E-mini Dow Jones Industrial Average has a 50-cent multiplier.
If the S&P 500 Index is trading at 2750, the notional value of one Micro E-mini S&P 500 futures contract is $13,750.
Similar to the E-mini, the tick increments of the Micro E-mini S&P 500 are quoted in a quarter of one point, a one tick move in the Micro E-mini S&P 500 equates to $1.25. A one-point move, which is four ticks, is worth $5.
This equates to a smaller, more affordable way to access one of the most liquid equity futures in the world.
The tick increment of the other three Micro E-mini contracts vary according to the contract multiplier.
The Micro E-mini futures contracts will trade Sunday 5 p.m. Central Time (CT) through Friday 4 p.m. CT, almost 24 hours per day.
Micro E-mini futures expire on a quarterly basis, settling in cash to the spot value of their respective Index on the third Fridays of March, June, September and December.
The Micro E-mini futures contracts operationally function and provide the same benefits as their E-mini counterparts, except for their smaller contract multiplier.
These benefits include:
- Portfolio diversification
- Capital efficiency
- Precision and flexibility in tailoring exposure and managing risk
Discover how a smaller, Micro E-mini futures contract opens the world to greater trading possibilities.
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