E-mini Russell 2000 Futures Contracts (symbol: RTY) allow futures investors to trade the Russell 2000 Index almost 24 hours per day, 6 days a week, through the CME Globex platform.
At 1/10th of the size of standard E-mini contracts, Micro E-Mini Russell 2000 Futures (symbol: M2K) present a lower-cost opportunity for traders to invest in US small-cap stock futures.
What is the Russell 2000 Index?
The Russell 2000 is a small-cap equity index made up of the bottom 2,000 companies within the Russell 3000 index. Created in 1984 by the Frank Russell Company, the Russell 3000 index represents approximately 98% of publicly investable American companies.
The Russell 3000 is considered a benchmark of the entire U.S. equity market in this sense as it consists of 98% of U.S. stocks.
Trading the Russell 2000 Index vs. S&P 500 Index
In contrast to the S&P 500 index, which consists solely of large-capitalization companies, the Russell 2000 is representative of the smallest 2,000 public companies in the U.S., excluding certain equities like OTC stocks and those with a market cap under $30 million.
Another major difference between the Russell 2000 and S&P 500 is that S&P companies are chosen by a committee whereas the Russell 2000 is selected by a formula, the bottom 2/3rds of the Russell 3000 index.
Micro E-Mini Russell 2000 Futures
Micro E-mini Russell 2000 futures (M2K) give traders the opportunity to participate in this exciting small-cap index in a contract 1/10th the size of standard E-mini Russell 2000 futures (RTY).
The micro-sized M2K contract moves in lockstep with its full-sized counterpart and the charts are virtually identical.
Launched in May of 2019 by the CME Group, Micro E-mini futures present a low-cost opportunity for traders to participate in American equity markets. Instantly gaining traction with the futures community, Micro E-mini futures volume exceeded 32 million contracts in their first 3 months of trading.
Why Trade Micro Russell Futures(M2K) vs. E-Mini Russell 2000 Futures(RTY)?
Micro E-mini Russell 2000 futures require less of a financial commitment than full-size E-minis. Therefore, the M2K is an ideal instrument for those seeking exposure to the Russell 2000 index with less capital.
While only being able to trade one contract of RTY futures, a trader with the same account size can flexibly scale in & out of an M2K position with multiple contracts. Additionally, Micro E-mini futures are fungible with standard E-minis, meaning that you can use Micro E-minis to offset a full-size E-mini position for the same underlying market.
M2K futures offer investors both long and short opportunities to speculate the Russell 2000. Micro equity futures allow traders to access American stock markets without a large financial burden or margin requirement. Some traders trade Micro E-mini Russell 2000 futures as a way to hedge their stock exposure, while others use these small-cap index futures to diversify their portfolios.
Micro E-mini Russell 2000 futures trade electronically nearly around the clock and have a worldwide following.
Micro E-mini Russell 2000 Futures Contract Specs:
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Exchange: Chicago Mercantile Exchange (CME)
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Class: Futures
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Trading Symbol: M2K
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Contract Size: $5 x Russell 2000 Index
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Pricing Unit: U.S. Dollars
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Tick Size: 0.1
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Tick Value: $0.50
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Point Value: 1 = $5
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Intraday Margin: $50
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Contract Months: March, June, September and December
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Trading Hours: Sunday to Friday 6:00 pm – 5:00 pm ET
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Position Limit: 100 contracts
E-mini Russell 2000 Futures Contract Specs:
-
Exchange: Chicago Mercantile Exchange (CME)
-
Class: Futures
-
Trading Symbol: RTY
-
Contract Size: $50 x Russell 2000 Index
-
Pricing Unit: U.S. Dollars
-
Tick Size: 0.1
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Tick Value: $5.00
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Point Value: 1 = $50
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Intraday Margin: $500
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Contract Months: March, June, September & December
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Trading Hours: Sunday to Friday 6:00 pm – 5:00 pm ET
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Position Limit: 50 contracts
Learn more about Micro E-mini Futures in this 2-minute video:
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