Is a position of five E-mini futures contracts financially equivalent to a position of one regular-sized larger futures contract on the same side of the market in the same contract month?
Yes. The daily settlement prices for the E-mini futures contracts are the same as the settlement prices for the corresponding contracts months of the regular-size contracts. Accordingly, a customer who has a long position of five E-mini futures contracts and a short position of one regular-sized futures contract in the same contract month is perfectly hedged. CME Group will impose no initial margin (performance bond) requirements on such a hedged position.
Related Questions
- May a customer liquidate E-mini futures positions against offsetting positions in the regular-sized futures contract without making additional trades in the market?
- How are the E-mini contracts similar to their larger counterpart contracts?
- How are E-mini contracts different from the larger contracts?
