E-mini index futures contracts are a tradable instrument to buy or sell a major market stock index like the S&P 500, Nasdaq 100, the Dow 30 industrials, and the Russell 2000. Each of these cash settled exchange traded contracts has a unique set of contract specifications for point value, expiration date, and minimum price move.
Index futures trading is a way for traders to analyze and trade short-term price movements on a specific group of stocks. Traders can actively buy or sell index futures contracts at current market prices virtually 24 hours a day, through a well-regulated futures broker like NinjaTrader. Index futures give traders direct trading exposure to these important global stock indexes.
Yes, you can trade index futures with NinjaTrader. NinjaTrader is a unique futures broker centralizing all the tools and services needed for both new and experienced traders to enter the global futures markets. NinjaTrader offers a comprehensive set of cutting-edge trading tools for both new and experienced futures traders. You can place orders and analyze the index futures markets from multiple trading platforms including the award-winning NinjaTrader Desktop.
There are many advantages to trading index futures contracts, one of which is the flexibility it offers over trading these same instruments using ETFs or individual stock names with their many limitations. Index futures offers extended trading hours, the ability to go short easily, and lower capital requirements.
The most active index futures is the E-mini S&P 500 index futures. It is one of the most widely traded index futures in the US and globally, and is considered a key benchmark for the health of the US stock market in general. The Nasdaq 100 futures are also heavily traded due to the weighting of some of the most influential technology companies in the world.
Trading index futures comes with a number of potential risks. It is important for traders to always be aware of the factors that can affect the price of the futures that they are trading and following a risk management plan should be a critical component of all trading strategies. As futures trading offers greater leverage for potentially increased profits, that leverage also increases the possibility of greater losses. Traders should only trade with risk capital. Risk capital is money you can afford to lose without affecting your lifestyle or changing your retirement horizon.