If You Trade The Mini Russell...

December 1, 2016 12:11PM CST

E-minis are futures contracts that represent a fraction of the value of standard futures. They are primarily traded on the Chicago Mercantile Exchange’s Globex electronic trading platform and the New York Board of Trade. E-mini contracts were first launched in 1997 for the S&P 500 Index, with great success, and are now available on a wide range of stock market indexes. Some E-mini contracts provide trading advantages. These advantages include high liquidity, greater affordability for individual investors due to lower margin requirements than the full size contracts, and round–the-clock trading from Sunday afternoon to Friday afternoon.

The Mini-Russell contract is traded on the US ICE Futures Exchange. Its symbol is TFE plus the month. In the past, its contract size has been $100 times the Russell 200, making each 100 point move worth $100. BUT WAIT! This Friday, December 2, 2016 at the close of business, the Exchange is making a HUGE change. Each 100 point move will now be worth $50.00! This means if you have ONE Mini Russell in your trading account,you will receive ANOTHER ONE LOT to equal the monetary value of your original position. SO..although your point value will be reduced, cutting the contract size in half, the margin will remain the same.

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This material has been prepared by a sales or trading employee or agent of RJO Futures and is, or is in the nature of, a solicitation. This material is not a research report prepared by RJO Futures Research Department. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions.