WHAT are Micro E-mini russell 2000 futures?
Micro E-mini Russell 2000 futures (product symbol M2K) are based on the Russell 2000 Index. The Russell 2000 Index is a broad-based market capitalization weighted index that tracks 2,000 small capitalization stocks covering a wide variety of sectors in the US economy. The Russell 2000 is considered a leading benchmark for U.S. small-cap stocks. This smaller-sized electronic futures contract gives traders an opportunity to take positions on the performance of the Russell 2000 index.
With a contract valued at $5 x the Russell 2000 Index price, Micro E-mini Russell 2000 futures give more traders the opportunity to discover the benefits of futures, by lowering the amount of money required to enter the market.
WHY would you want to trade Micro E-MINI russell 2000 futures?
- Leading indicator to where other indexes may move towards.
- Allows for hedging opportunities against the Russell ETF or other basket small cap stock positions.
- The global markets don’t sleep. This contract allows traders stock exposure and growth opportunities in a price weighted index that offers almost 24-hour trading, six days a week.
HOW DO you trade Micro e-mini russell 2000 futures?
Micro E-mini Russell 2000 futures are “futures contracts” on an equity index benchmark. They are cash-settled contracts, and these have quarterly expiration dates scheduled for the months of March, June, September, and December.
With a single transaction, investors can use equity index futures products to manage risk or seek profits based on whether they think the index performance will rise or fall.
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