When traditional Futures contracts began to become expensive beyond the reach of the average traders, fractional contracts known as micro contracts came into use.
Micro Futures contracts grant access to Futures markets for a smaller amount of money than traditional Futures.
As mini Futures contracts grew more expensive, in a similar fashion, micro e-mini Futures contracts entered the market in 2019.
With micro e-mini Futures contracts’ attractive price points, the possibility to trade against the stock market as a whole became more available to ordinary investors. The increased liquidity and accessibility of micro e-mini Futures also widen their appeal to investors.
With AvaFutures you’ll gain access to e-mini and micro Futures contracts on a range of instruments from the EUR/USD Forex pair, to the S&P 500, and beyond.
Let’s take a look at an illustrative example of how these contracts function:
With an e-mini S&P 500 Futures contract, you get exposure to the 500 biggest U.S. companies. The micro e-mini S&P 500 contract represents 1/10 of the original e-mini S&P 500 Futures contract. Allowing traders to participate in the market with reduced exposure and risk. As a result, the day margin requirement for a micro e-mini S&P 500 contract is set at $130 compared to the $1,298 margin requirement of the original e-mini contract.
It’s important to note that along with increased affordability and accessibility, e-mini Futures also come with heightened volatility.
For AvaFutures MT5 contract specification click here.