Futures have many advantages but one of the primary disadvantages has been the large notional values.
Higher value contracts do decrease trading costs relative to the spread but they can also make it more risky to hold for bigger moves. Leverage, even very high leverage, can be essential for trading for optimal gain but fidelity of control, granularity, is just as important.
And, that is why I am very excited with the CME Group’s decision to introduce the E-mini micro futures contracts, at 1/10th the size of regular contracts, and scheduled to launch in May 2019.
Brokers offering either free or appropriate cost commission structure and liquidity will be critical to these product success or failure. I look forward to trading these products, provided liquidity is good, when they arrive.
You can learn more from CME Group’s website here.
Curtis is passionate about markets. He has developed top ranked futures strategies. His core focus is (1) applying machine learning and developing systematic strategies, and (2) solving the toughest problems of discretionary trading by applying quantitative tools, machine learning, and performance discipline.
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