Seven benefits of trading E-minis verses stocks, options and forex are the high volatility, higher leverage, the higher liquidity along with one hundred percent trading ability with electronic order platforms, which cancels out the broker or day floor trader. Some other benefits are the low slippage, the ability to go long or short, low commissions and short term tax advantages. Some of the other reasons for E-minis are no up-tick rules and they require no research before hand. When one looks at these benefits, you see that this type of trading is a way to protect your investment and still make a profit without a high risk.
The way you choose to trade and the method you use to trade determines your overall profits. Because of the growth of the E-minis, anyone and everyone is dumping long-term stocks and investing in the E-minis indexes. The method you use to trade has to fit your personality as well as your style in order to make a profit. The first and foremost benefit of E-minis is the simplicity. You do not need any software or special talents to deal in E-minis and still make money.
The commissions you pay on E-minis are substantially lower than other stock or options trades
. This alone makes them a higher profit making solution. The margin requirements along with low commissions vary among brokers, but still allow for a higher net profit after trading. Because you only need as little as twenty-five hundred dollars to start trading with, and only five dollar round trips with E-minis Global or Traders International partners you can make a good profit with the right method and strategy. E Trade Options Commissions
If you choose stock options, you have to trade with market markers, in comparison to E-minis which do not. The leverage on stocks options is about eight to one where E-minis are up to twenty to one. The Forex has higher commissions with a bid and ask with no last price. Forex is harder to understand and since there is no last price, you have to decide to ask or bid, but you need to know the answer. E-minis have all results in seconds; you always know where you are at with E-minis verse Forex. Forex is a twenty-four hour trade, but you will not see enough activity during certain times to make it worth trading, where E-minis are twenty-four hours and trading usually goes smoothly all the time.
There is more versatility with E-minis than other options and stocks, this is mainly due to it being just as simple to go short or long and with easy access and electronic platform. This has led the market to rise above stocks and allow people to buy and sell their own indexes with lower commissions to the broker. E-minis can make you more money daily than what you could earn in a month if you use the proper methods; you have the potential to make upwards of 80% - 90% returns a day. You always have to time to watch the market, but remember greed and foolish trading can haunt you if it fails.
E-minis make sense over options, stocks and Forex because of so many reasons beside the seven benefits listed. You have more freedom with your money and have a lower risk of loss and higher instance for profit. Stocks hold the market on high risk, while E-minis hold the market for low risk and high profitability.
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