The E-mini Russell 2000 index futures contract is a tradeable instrument representing 2,000 small capitalization stocks across a wide range of business sectors. Small caps stocks are generally considered more volatile and can offer the trader greater profit opportunities, but they also come with greater risk for losses. A one point move in the standard contract equates to $50 of profit or loss, and a one point move in the micro 1/10th size contract equates to $5 of profit or loss. Each futures contract has a unique set of contract specifications that are set by the futures exchange.
E-mini Russell 2000 futures trading is an agreement between a buyer and seller at a specified price in a contract that will expire on a specific date. Traders can enter and exit positions any time prior to the expiration date in financially settled futures like the E-mini Russell 2000 contract.
There are many advantages of trading E-mini Russell 2000 index futures, one of which is direct market access for speculating on the price movement of the E-mini Russell 2000 stock index. These futures are a popular trading option because the index is a broad proxy for the entire stock market. It provides good liquidity virtually 24 hours a day, lower trading capital requirements, and like all futures, tax benefits over stock trading. Futures can also offer traders more trading opportunities and flexibility over individual stocks, options, and ETFs with their many limitations.
Contracts are traded on a well-regulated exchange where orders are matched and cleared on a fair and level playing field with full price and order transparency. Traders can place buy and sell orders through their broker to enter or exit a position virtually 24 hours a day.
Yes, you can trade these futures and others with NinjaTrader. NinjaTrader is an industry-leading futures broker offering low commissions, low margin rates, and safety of your account funds. With Ninja you can trade dozens of the most actively traded futures markets in the world.
Like every futures contract, the primary risk here is that the price of the E-mini Russell 2000 futures will go against the trader’s position. Economic news, earnings reports, changes in interest rates, and investor sentiment can all have a significant effect on the price of futures.
The E-mini Russell 2000 futures is an important economic indicator globally. Business activity from these 2,000 largely diverse stocks can have a significant influence on the overall condition of the US economy.
The Russell 2000 stock index is a capitalization weighted index, where each of the 2,000 components are weighted according to their total market capitalization, the larger the capitalization the larger the weight in the index. For example, if the total market capitalization of all 2,000 stocks is 100 billion dollars, and just one stock has a market capitalization of $2 billion, then that one stock will contribute 2% to the price movement of the index.
Contracts are traded on the Chicago Mercantile Exchange (CME)(Globex System). Live trading during the Globex session is available from Sunday at 6:00 PM Eastern Time until Friday 5:00 PM Eastern Time, giving traders the ability to capture unique trading opportunities while the stock market is closed.