The CME Group plans to launch Micro E-mini Futures contracts for trading in May of 2019.
The four markets available for trading will be the S&P 500, NASDAQ 100, Russell 2000, and the Dow.
These new Micro-Emini contracts will be one tenth the size of their respective equity indexes. One of the benefits of having a smaller multiplier are the ability to control a larger number of contracts for the same price and thus, be able to scale out.
For example a trader who might only be trading 1 ES contract can now trade 10 Micro ES contracts with the same buying power effect and then be able to exit at multiple profit targets, trailing a stop and staying in winning trades longer.
There will undoubtedly be less volume in these new contracts, so there is potential for slippage.
Be careful, especially at first. Best to let them trade for a week and see how things develop.
Here’s a video from the CME with more color:
Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.