Micro E-mini Futures Trading Basics Explained
If you’ve been worried about trading the E-mini S&P 500 (ES) due to the $12.50 tick size and what they may mean should you experience any losses, well, good news – have you heard of the Micro E-mini? Indeed, the Micro E-mini S&P 500, abbreviated as MES in NinjaTrader, is 1/10th the size of the regular E-mini. That means the tick size is $1.25. Though both the profit and loss are smaller, you may be able to win more than lose, thus giving way to some profit. And when you feel more comfortable, overcoming any psychological barriers, you may be more ready to trade the ES.
NinjaTrader Brokerage supports the MES with smaller funding requirements. Recently, they advertised that accounts could be funded with as little as $400. However, you may want to fund an account with more than that, as consecutive losses may reduce your funding “buffer.”
Worth noting is that there are multiple Micro E-minis to trade, which are described in the video. They include M2K (Russell), MNQ (Nasdaq), MYM (Dow). Essentially, you can take some of the most popular “regular” futures markets and add the letter M in front and that’s the “micro” equivalent. The video above also shows how to open NinjaTrader charts for these various micros.
The price movement and signals for the Atlas Line, Trade Scalper, etc. are the same for the regular and micro futures. If you like the signals in the video and want to apply them to your own charts, click here for the DayTradeToWin courses page to get started.