Summary
If you're an individual investor, when it comes to futures contracts, size does matter. And under volatile market conditions, bigger is not necessarily better. Perhaps the most popular small contact franchise is CME Group's E-mini stock indexes, which are based on the S&P 500, the Nasdaq 100, and Dow Jones Industrial Average Index and have five quarterly contracts listed for trading. The North American Derivatives Exchange specialized in even smaller sized contracts than the larger exchanges. While smaller contracts can give traders access to markets they would not have if they could only trade the larger contracts, it is important to make sure there is enough liquidity. Flexibility is key as well. Smaller contracts allow you to get exposure to a certain market without committing too much capital. Smaller contracts mean less money locked down into one particular contract, allowing for more portfolio diversification.
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Small Contracts, Big Opportunities
If you're an individual investor, when it comes to futures contracts, size does matter. And under volatile market conditions, bigger is not necessarily better. Small contracts can mean more flexibility and risk control, which are major benefits when the market is erratic. Exchanges offer plenty of mini contract options that can help you boost your returns.
Perhaps the most popular small contract franchise is CME Group's E-mini stock indexes, which are based on the S&iP 500, th...See the full content of this document
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