When the Emini S&P 500 made its debut in early September of 1997, it became the most successful contract ever launched. Daily trading volume rose quickly and it soon overtook the standard, and larger, S&P 500 futures contract. Today, the Emini S&P 500 futures is by far the most popular equity index contract traded at CME Group. A great percentage of this represents day trading activity. This large and continual presence of Emini day traders means one thing: that money is being made day trading the Emini S&P 500 futures.

WHAT IS DAY TRADING?

Day trading requires that all contracts whether bought or sold be closed the same day as they were established. If a day trader buys a contract, then it must be sold prior to the closing bell on that day. The market closing time is set by the respective exchange and can vary from market to market. In the case of the E-mini® S&P 500® futures contract, the exchange is CME Group and the closing bell rings at 3:15 p.m. Central Time meaning that day traders have until that moment to close their positions. For the E-mini's, the trading day actually starts on the evening prior giving the E-mini day trader an extensive 23-hour period in which to buy and sell.

WHY DAY TRADE?

Day trading has two major advantages. First, because positions are not held overnight, day trading may be less risky than position trading in which open contracts are held for several days or more and the margin required is correspondingly less, usually about half of the standard requirement though sometimes even less. This makes day trading more affordable. Second, many day traders enjoy the relief of knowing that all trades terminate by the day's end so no sleep is lost at night worrying over any open positions. Each day represents a new opportunity to earn profit.