In the words of Archimedes, “Give me a lever and a place to stand and I will move the earth.” From his reference point, leverage was the power gained from the mechanical advantage of using a lever.
In futures trading terms, leverage refers to the ability to control a high-value contract with a much smaller investment through the use of borrowed capital. This boosts a trader’s buying power and allows traders to control large positions with minimal risk capital.
Trade US Stock Indexes
With Micro futures, you can gain exposure to stock index markets with even less financial commitment! As highly-leveraged investments, Micro E-minis provide the ability to control a large contract value with a smaller amount of capital. Access the following highly-liquid equity markets in contracts 1/10th the size of traditional E-minis:
- S&P 500 Index: Micro E-mini S&P 500 futures (MES)
- Dow Jones Industrial Average: Micro E-mini Dow futures (MYM)
- Nasdaq-100 Index: Micro E-mini Nasdaq futures (MNQ)
- Russell 2000 Index: Micro E-mini Russell futures (M2K)
Reduced Margins with Micro E-minis
Leverage serves as the backbone of futures markets and all participants rely on borrowed capital to potentially increase the returns of their investments while risking the minimum amount of money. This minimum initial investment is known as the initial margin.
Margin is essentially a down payment on the full value of a futures contract. As compared with other financial instruments which use margin, futures require much less capital up-front and provide the most leverage for the margin. This allows traders to control contracts much more valuable than their initial investment.
At 1/10th the size of traditional E-mini contracts, Micro E-minis offer much lower margins than their larger counterparts.
Why Trade Micro E-minis with NinjaTrader?
NinjaTrader is the premier destination for futures trading, with $50 day trading margins on Micro E-mini futures and providing:
- Clear savings through deep discount commissions
- Low minimum – Open your NinjaTrader account with only $400
- Free Platform: Includes all key features needed for live trading
- 1000s of Apps & Add-Ons to personalize your platform
Please note: Financial leverage can result in losses greater than the initial margin, and traders should take appropriate measures to minimize risk when trading unpredictable markets.
See Why Traders Are Choosing Micro E-mini Futures:
NinjaTrader supports over 60,000 traders with a powerful & user-friendly trading platform and world class support. NinjaTrader is always free to use for advanced charting, strategy backtesting and trade simulation.
Download NinjaTrader’s award-winning trading platform & get started with a free trading demo today!