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With stock market volatility levels at or near record highs, its not surprising that trading within the stock index future complex has witness such staggering growth over the past few years. For example, on a typical day e-mini S&P 500 volume exceeds 500,000 contracts. With high volatility and enormous volume, trading opportunities are presented frequently, especially for day traders. You only need to watch the action during the day and you’ll see exactly what where talking about!
Day Trading
Typically individuals who day trade equities do so from the long side. However, with stock index futures you can establish a short position as easily as a long position. With large up and down moves within the trading day stock index and e-mini stock index futures provide ample trading opportunities for day traders.
Electronic Trading
Through state of the art trading platforms electronic trading can be accomplished with easy, lightning fast execution, and fill reporting. From the time you place your order, you can typically receive your fill price back within seconds! Instantaneous trade execution and reporting is vital for day trading.
Other Advantages of Stock Index Futures
- Benefit from transaction costs that are lower than the cost of trading stocks.
- Adds flexibility to your investment portfolio.
- Creates the possibility of speculative gains using leverage.
- Provides hedging or insurance protection for a declining equities portfolio during market corrections.
- Establish a short position as easily as a long position
- Transfer risk or react to news almost 24-hours a day!
- Enjoy a potentially lower tax rate.
Summary
Stock index and e-mini stock index futures contracts provide an exciting, highly versatile, efficient, and an economical means of capitalizing on the daily volatility witnessed within today’s equity markets, where each day represents a new world of opportunity! Furthermore, futures traders can capitalize on both rising and falling markets. Additionally, there is no longer a need to tie up large amounts of capital purchasing stocks. And through Aaron’s trading platforms you can trade through the internet day or night and receive your fill prices back in seconds.
Free Investors Kit
To facilitate learning more about stock index and e-mini stock index futures we are offering a free stock index futures investors kit. Easy to read and highly informative, the kit contains practically all the basic knowledge you need to understand and trade this exciting markets. Request stock index futures kit.
For more information on stock index futures, including contract specifications: Chicago Board of Trade, Chicago Mercantile Exchange
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