WHAT IS DAY TRADING?
Day Trading Beginner
Day trading requires that all futures contracts whether bought or sold be closed the same day as they were established.
If a day trader buys a contract, then it must be sold prior to the closing bell on that day. The closing time for a particular
futures market is set by the respective
exchange and can vary from market to market. In the case of the E-mini® S&P 500® which is the most popular
futures contract for day trading, the exchange is CME Group and the
closing bell rings at 3:15 p.m. Central Time meaning that day traders have until that moment to close their positions. For the E-mini's,
the trading day actually starts on the evening prior giving the day trader an extensive 23-hour period in which to buy and sell.
WHY DAY TRADE FUTURES?
Day Trading Beginner
Efficient, liquid and round-the-clock electronically traded markets are among the top reasons for day trading futures.
The margin or cash required to open a futures account for day trading is also not subject to the
Pattern Day Trader Rules
that apply when day trading stocks or equities. Beyond this, day trading has two major advantages. First, because futures positions are not held overnight, day trading may be less risky than
position trading in which open contracts are held for several days or more and the margin required is correspondingly
less, usually about half of the standard requirement though sometimes even less. This makes day trading more affordable.
Second, many day traders enjoy the relief of knowing that all trades terminate by the day's end so no sleep is lost at
night worrying over any open positions. Each day represents a new opportunity to earn profit.
WHY DAY TRADE E-MINI S&P 500 FUTURES?
Day Trading Beginner
When the E-mini S&P 500 made its debut in early September of 1997, it became
the most successful contract ever launched. Daily trading volume rose quickly and it soon overtook the standard, and
larger, S&P 500 futures contract. Today, the E-mini S&P 500 futures is by far the
most popular equity index contract traded at CME Group.
A great percentage of this represents day trading activity.
This large and continual
presence of day traders means one thing: that money is being made day trading the E-mini S&P 500 futures.
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The Modern Day Trader. Day trading can be done entirely over the
computer from the comfort of your home or
office and from anywhere on the planet. |
Day Trading Beginner
Day Trading Beginner
The E-mini S&P 500 futures became the contract of
choice for day traders practically since its inception.
Average daily trading volume dwarfs that of all other
equity futures contracts traded on CME Group.
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 © 2010. World Link Futures, Inc. All rights reserved.
Futures trading involves substantial risk and is not for everyone. Only risk capital should be used. See About Us for full disclaimer.
The following trademarks and service marks are owned by Chicago Mercantile Exchange Inc.: CHICAGO MERCANTILE EXCHANGE®,
CME E-mini®, CME®, E-mini® and Globex®. The following are trademarks of The McGraw-Hill Companies: S&P®, S&P 500®.
Keywords: day trading, day trading beginner, day trading education, day trading resource, day trading E-mini S&P 500, day trading futures, day trading commodity, day trading activity, day trader
Abstract: Day Trading Futures, An Educational Resource for the Beginner Trader.
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