E-Mini
E-Mini futures are electronically traded futures contracts sized at a fraction of the full standard contract. Introduced by the CME in 1997, they became the dominant vehicle for retail and institutional futures trading.
E-Mini (short for “electronic mini”) futures were introduced by the CME Group in September 1997 starting with the E-Mini S&P 500 (ES). They were designed to make futures accessible to retail traders by reducing the notional value of the full S&P 500 contract, which was priced out of reach for most individuals.
Why “E-Mini”
The “E” stands for electronic: E-Minis trade exclusively on the Globex electronic platform, unlike the pit-traded full-size contracts they supplemented. The “mini” refers to their reduced size (originally 1/5th of the standard contract, though the full contracts have largely been retired).
Major E-Mini contracts
| Contract | Underlying | Tick Value | Point Value |
|---|---|---|---|
| ES | S&P 500 | $12.50 | $50.00 |
| NQ | Nasdaq 100 | $5.00 | $20.00 |
| YM | Dow Jones 30 | $5.00 | $5.00 |
| RTY | Russell 2000 | $5.00 | $50.00 |
E-Mini vs Micro
In 2019 the CME launched Micro E-Mini contracts at 1/10th the size of the standard E-Mini. The naming convention became:
- Full contract (largely defunct for retail)
- E-Mini: the current standard for active retail/institutional traders
- Micro E-Mini: 1/10th of the E-Mini, for smaller accounts
E-Minis remain the benchmark for liquidity and institutional participation. ES and NQ are among the highest-volume futures contracts in the world.
E-Mini liquidity advantage
Because E-Minis have massive participation from both retail and institutional traders, bid-ask spreads are tight (typically 1 tick), fills are reliable even on larger size, and the contracts trade nearly 24 hours a day Sunday through Friday.