e mini

e mini

E-Mini S&P 500: Origins, Viability, and the Rise of Micro S&P Products

August 1st, 2023 Filed under Future Trading News | Comment (0)

Find out more about trading E-Mini S&P 500 contracts with Cannon Trading Company here.

The E-Mini S&P 500 is a widely traded stock index futures contract that provides exposure to the S&P 500 index. In this article, we will explore the history of the E-Mini S&P 500, understand its viability as a futures contract, and examine the evolution of micro S&P products. We will delve into the conception of trading the S&P 500 index as an E-Mini futures contract, the reasons behind its success, and the subsequent development of micro S&P contracts.

I.Origins of the E-Mini S&P 500:

The E-Mini S&P 500 came into existence as a response to market demands and advancements in technology. Its creation was driven by the Chicago Mercantile Exchange (CME), which sought to introduce a more accessible and cost-effective way for traders to gain exposure to the S&P 500 index.

  1. Conception of E-Mini Futures: The concept of trading the S&P 500 index as an E-Mini futures contract was conceived by the CME. The exchange recognized the need for smaller-sized contracts that would allow individual traders to participate in stock market index trading without the capital requirements of full-sized contracts.
  2. Introduction of E-Mini S&P 500: In September 1997, the CME launched the E-Mini S&P 500 futures contract, marking a significant milestone in the evolution of stock index futures trading. The E-Mini S&P 500 contracts represented a fraction of the value and margin requirements of their full-sized counterparts, making them more accessible to a wider range of market participants.

II. Viability of the E-Mini S&P 500 Futures Contract:

Several factors contribute to the viability of the E-Mini S&P 500 as a futures contract:

  1. Broad Market Exposure: The S&P 500 index is widely regarded as a benchmark for the overall performance of the U.S. stock market. Comprising 500 large-cap U.S. companies, it represents a diverse range of sectors and industries. The E-Mini S&P 500 futures contract provides traders with exposure to this broad market index, allowing them to speculate on or hedge against market movements.
  2. Liquidity and Efficiency: The E-Mini S&P 500 is one of the most liquid futures contracts globally. Its popularity and high trading volume ensure ample liquidity and tight bid-ask spreads. This liquidity, combined with electronic trading platforms, allows for efficient price discovery and ease of trade execution.
  3. Market Influence and Visibility: The S&P 500 index’s importance in the financial industry contributes to the E-Mini S&P 500’s viability as a futures contract. The index is widely followed by investors, analysts, and market participants worldwide. Its performance influences market sentiment and serves as a reference point for various investment strategies.

III. Evolution of Micro S&P Products:

Building upon the success of the E-Mini S&P 500, the CME introduced micro S&P products to further enhance accessibility and cater to individual traders.

  1. Introduction of Micro E-Mini S&P 500: In May 2019, the CME launched Micro E-Mini S&P 500 futures contracts. These contracts are one-tenth the size of the E-Mini S&P 500, allowing traders to participate in the market with even smaller capital requirements. Micro E-Mini S&P 500 futures provide greater flexibility and precision for traders with limited capital or those seeking to fine-tune their exposure.
  2. Advantages of Micro S&P Products: Micro S&P products offer several advantages. They require lower margin requirements, making them more accessible to retail traders and smaller institutional investors. Additionally, they enable traders to more precisely tailor their positions, adjust risk levels, and scale their exposure based on their trading strategies and capital availability.
  3. Micro E-Mini Success: The introduction of micro E-Mini S&P 500 contracts has gained significant traction in the futures market. The smaller contract size, lower margin requirements, and high liquidity have made micro S&P products popular among individual traders and allowed for increased participation and diversity in the market.

The E-Mini S&P 500, conceived by the CME, revolutionized stock index futures trading by providing accessible and cost-effective exposure to the S&P 500 index. Its viability stems from the broad market exposure, liquidity, and market influence associated with the S&P 500 index. The subsequent introduction of micro S&P products, such as the Micro E-Mini S&P 500, further enhanced accessibility, flexibility, and precision for traders. The rise of micro S&P products has attracted retail traders and smaller institutional investors, fostering increased participation and diversification in the futures market. Overall, the E-Mini S&P 500 and micro S&P products have played instrumental roles in democratizing access to stock index trading and shaping the landscape of futures markets.

Ready to start trading futures? Call 1(800)454-9572 and speak to one of our experienced, Series-3 licensed futures brokers and start your futures trading journey with Cannon Trading Company today.

DisclaimerTrading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.  Past performance is not indicative of future results. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

Mini Nasdaq Chart & Support and Resistance Levels 3.03.2021

March 2nd, 2021 Filed under Future Trading News | Comment (0)


Voted #1 Blog and #1 Brokerage Services on TraderPlanet for 2016!!  


Dear Traders,

Like us on FaceBook!
Get Real Time updates and market alerts on Twitter!
Time to trade June bonds, May silver and May copper as well as May grains.
Stock futures and currencies don’t roll over until mid March and we will send a separate notice.
The recent volatility reminds me of last March, when COVID started.
I have a few points to make:
  1. Take a look at the below chart from today on the mini NASDAQ this volatility will play both sides and in MY OPINION this is not a market to just buy and hold using futures….You need to be able to react and adjust positions according to market action and sentiment.
  2. DON’T try to predict tops and bottoms….
  3. Learn to reduce trading size. Perhaps trade smaller contracts like the micros.
  4. Understand that loses are part of trading and this is definitely not a good time to “fight the markets”.
  5. Focus more on risk management and ways to protect certain positions as needed.
  6. Survive to trade another day.
  7. LIMITS guidelines visit: https://www.cmegroup.com/trading/equity-index/faq-sp-500-price-limits.html
Emini Nasdaq NQ Chart

Good Trading

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.  You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time when it comes to Futures Trading.


Futures Trading Levels


Futures Support & Resistance Levels 3.03.2021

Economic Reports, source: 


BetterTrader Economic Indicators


This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgement in trading.

Futures Trading Levels, Types of Trading Days

March 30th, 2011 Filed under Commodity Trading, Future Trading News, Futures Trading | Comment (0)

Cannon Trading / E-Futures.com

The following is taken from a guide I have written that helps subscribers to my daily chart service. You can have a 2 week free trial to the daily live charts service along with buy/sell triggers and get the full guide along with chart examples, rules and much more by signing up at:

Cannon Trading Inc. Day Trading Webinar

General Notes:
At any given day, one must understand the trading environment that specific day has to offer and adjust their trading style accordingly. In our case it relates more to the size of stops and target based on volatility. Some days the market gives us many opportunities; some not as much; and some days it provides us with mostly risks…….take what the market gives you and not what you want it to give…..

I think if a trader understands early enough what type of trading day it is, he or she can choose which tools from the webinar are most suited for that days trading. If one can do that successfully (which is not easy), I think that is half the battle.

Not taking a trade is better than a bad trade.

My opinion is that there are 3 main types of trading days.

  1. Most common is two sided trading action with swings up and down – this type of trading day is most suitable for the main aspect of this model, which is taking trades based on the arrows.
  2. Strong trending day, mostly one directional – this type of trading day is the least common, many times this will happen on Mondays and maybe 3-5 times a month at most – this type of trading day is most suitable for using the color scheme I have on the charts. Green bars mean strong up trend, red bars mean strong down trend. If you determined that this is a trend day, then use pull backs to enter with the direction of trend and use the parabolic (little dashes) as you trailing stop.
  3. Slow and/ or choppy trading day – this type of trading day is best suited for taking small profits from the market by either using the main model or taking the diamonds as entry signal, and going for quick profits and tight stops.

Read the rest of this entry »

Futures Trading Levels and Economic Reports for December 7th 2010

December 7th, 2010 Filed under Future Trading News, Futures Broker, Futures Exchange | Comments Off on Futures Trading Levels and Economic Reports for December 7th 2010

Today was a “slow trading day” when it came to stock indices, which leads me to a good point I would like to make. Most of our day traders, trade the e-mini stock index futures, mostly the mini SP because of its heavy daily volume and exposure.

However, I think that day-traders should be able to follow at least another market, maybe even two additional markets and look for different set up in these markets as well.

Good example from today is the Euro currency. While the mini SP was pretty dead….the Euro had nice range, good volatility and good volume which presents both risks and opportunities for day-traders.

Obviously, before you start trading a new market you should educate yourself on tick size, trading hours, “personality”, when is there more volume in that specific contract etc.

If you do so, I think you will achieve a couple of things, first is diversification. While some days trades in certain market may not work, trades in a different market may provide balance.

Also, if on certain days, certain markets are “sleepy” ( which most day-traders do NOT like), another market may have more action….

As always, do your homework, practice in simulation mode first and make sure you understand the “new contract” you may be trading along with the risks involved.

Below is a screen shot of the Euro Currency from todays webinar session :
( free trial at – https://www.cannontrading.com/tools/intraday-futures-trading-signals )

SP-500-Day-Trading-2010-12-07 Read the rest of this entry »

Futures and Commodity Trading Levels for October 26th, 2010

October 25th, 2010 Filed under Commodity Brokers, Commodity Trading, Financial Futures, Future Trading News, Futures Broker, Futures Exchange | Comment (0)

Weekly chart of the mini Russell 2000 for your review below.


Read the rest of this entry »

Have A Questions? Open an account Free Demo Account Free Demo Account


Valid first name is required.
Valid last name is required.
Phone number is required.
E-mail is required.
Message is required.
Phone (USA)
Phone (International)
Our Approach

You and your broker will work together to achieve your trading goals. We develop long term relationships with our clients so that we can grow and improve together.
Learn More About Choosing Cannon

Our Platforms

Please click on one of our platforms below to learn more about them, start a free demo, or open an account.
E-Futures Sierra Charts Firetip (Mac Compatible) RTrader

Doing Business With
See more...