Futures
trade with high leverage in comparison to the stocks making up the
indexes. Buying 100 shares of the SPY
(the ETF that tracks the S&P 500 index) would cost nearly $29,200 at the
time of this writing. Even with 2:1
margin, a trader would need $14,600 to maintain the position. To trade one contract of the ES (the S&P
500 eMini future), a trader only needs $6930.
For an intraday trade, the margin could be as low as $500!
The
first half hour to hour of the equity markets can be very volatile. Sometimes
it seems like prices are fluctuating wildly with no rhyme or reason. However,
there is a technique that could help you predict the morning price movement and
even potential price reversals. This technique could be used for...