How Do You Trade Stock Index Futures?
Unlike in the past, when trading futures was reserved for members of the big Futures Exchanges, such as the Chicago Mercantile Exchange (CME) and Chicago Board of Trading (CBOT), traders can now easily enter orders online, and trade with the big boys. Stock Index Futures, also known as Equity Index Futures are a popular product for trading as they have high liquidity, narrow spreads, and offer a diverse selection of trading choices. Additionally, Stock Index Futures are also available in a smaller version called E-Minis, which are 1/5th the size of a standard contract, and can be traded with smaller margin requirements. Open a futures trading account. The CME has a Broker Directory on their website with a list of U.S. Brokers that allow futures trading. The directory is at cmegroup.com/education/find-a-broker/broker-directory-na.html. Check broker details about margin requirements. Each futures contract has a minimum cash balance needed per contract to open a new position. Also, once p
