Stock Market Or S&P 500 For The Next 50 Years Leverage In Trading Emini Futures

You are searching about Stock Market Or S&P 500 For The Next 50 Years, today we will share with you article about Stock Market Or S&P 500 For The Next 50 Years was compiled and edited by our team from many sources on the internet. Hope this article on the topic Stock Market Or S&P 500 For The Next 50 Years is useful to you.

Leverage In Trading Emini Futures

Trading emini futures, or futures in general, attracts many want to-be traders. This is due to, in part if not mainly, the huge leverage they offer. To understand what we mean by this, note that sometimes, to control one emini contract all you need to do is deposit $500. Now, obviously, this is usually enough only to cover the margin minimum; to actually trade you need to deposit a bit more, but not really that much more, relatively speaking. Twice that would be just fine.

Suppose now that you indeed had a grand in your futures account with a broker that set the emini day trading margin at only $500. Suppose also that what you wanted to trade is ES, the emini contract of S&P 500. Since one point of this instrument is equal to $50 and its price is these days (April 2007) about 1450, it is quite easy to find out how much dollar value you can control with your $1,000. It is simply $50*1450=$72,500. That’s right: your paltry $1,000 (or even $500 in principle, though only theoretically) can control as much as $72,500!

Now, with the same amount ($1,000) you would be able to control at most $2,000 of a stock value provided you had a margin account. That is how great leverage futures offer. It is, in fact, huge compared to virtually all other trading instruments with the exception of currency pairs, where the leverage in question can be even greater, and spread betting which gives you a comparable power of leverage.

Obviously, it is important to remember that the leverage this high is a double-edged sword and because of this it should be used judiciously. What this means for most traders out there is that perhaps they should simply stick to stocks.

Video about Stock Market Or S&P 500 For The Next 50 Years

You can see more content about Stock Market Or S&P 500 For The Next 50 Years on our youtube channel: Click Here

Question about Stock Market Or S&P 500 For The Next 50 Years

If you have any questions about Stock Market Or S&P 500 For The Next 50 Years, please let us know, all your questions or suggestions will help us improve in the following articles!

The article Stock Market Or S&P 500 For The Next 50 Years was compiled by me and my team from many sources. If you find the article Stock Market Or S&P 500 For The Next 50 Years helpful to you, please support the team Like or Share!

Rate Articles Stock Market Or S&P 500 For The Next 50 Years

Rate: 4-5 stars
Ratings: 9912
Views: 99839745

Search keywords Stock Market Or S&P 500 For The Next 50 Years

Stock Market Or S&P 500 For The Next 50 Years
way Stock Market Or S&P 500 For The Next 50 Years
tutorial Stock Market Or S&P 500 For The Next 50 Years
Stock Market Or S&P 500 For The Next 50 Years free
#Leverage #Trading #Emini #Futures

Source: https://ezinearticles.com/?Leverage-In-Trading-Emini-Futures&id=534424

Related Posts

default-image-feature

Stock Bonus Retirement Plans Are Similar To Profit-Sharing Plans Except It Costs How Much to Replace an Employee?

You are searching about Stock Bonus Retirement Plans Are Similar To Profit-Sharing Plans Except, today we will share with you article about Stock Bonus Retirement Plans Are…

default-image-feature

Step-By-Step Example Of The Stock Valuation Technique Using Numbers Understanding Marketing – An Overview of Strategies, Costs, Dangers and Risks

You are searching about Step-By-Step Example Of The Stock Valuation Technique Using Numbers, today we will share with you article about Step-By-Step Example Of The Stock Valuation…

default-image-feature

Should.I Sell.My Stocks.For.A.Capital Gains.Loss Then Buy Back.In Forex Signal Trading Keeps You Informed

You are searching about Should.I Sell.My Stocks.For.A.Capital Gains.Loss Then Buy Back.In, today we will share with you article about Should.I Sell.My Stocks.For.A.Capital Gains.Loss Then Buy Back.In was…

default-image-feature

Should You Sell Stock Funds That Are Up Oilr.Bond Funds Free Guide to Pension Tax Relief

You are searching about Should You Sell Stock Funds That Are Up Oilr.Bond Funds, today we will share with you article about Should You Sell Stock Funds…

default-image-feature

Should I Purchase My Stock Options Short-Term Gains Long-Term 3 Easiest Ways to Make Money From Internet

You are searching about Should I Purchase My Stock Options Short-Term Gains Long-Term, today we will share with you article about Should I Purchase My Stock Options…

default-image-feature

Result Wal-Mart Stores Rarely Run Out Of Stock Of Popular Two Way Radios Used and the Construction Trade

You are searching about Result Wal-Mart Stores Rarely Run Out Of Stock Of Popular, today we will share with you article about Result Wal-Mart Stores Rarely Run…