DEFINITIONS OF EMINI DAY TRADING TERMS
Emini Daytrading Strategies Course

Common terms and definitions used in emini day trading.

Emini Futures Trading Glossary


Back Months
Futures delivery months other than front month.
Bear
One who expects a decline in prices.. A news item is considered bearish if it is expected to result in lower prices.
Bear Market
A market in which prices generally are declining over a period of months or years.
Bid
An offer to buy a specific quantity of a commodity at a stated price.
CBOT
Chicago Board Of Trade.
Contract
An agreement made at a specific price for delivery on a certain day. The Emini Contracts are all cash based. Also known as Futures Contracts.
Day Trader
An active trader who opens and closes positions the same day and seldom hold positions after the close. A day trader usually trades very liquid markets like the S&P 500 Eminis, Erussell Eminis, Dow Eminis, and Nasdaq Eminis.
Dow Eminis
The emini futures market that is a basket of 30 stocks. It is the average of the Dow Jones Industrial Average.
Emini
A mini contract that is traded exclusively on an electronic trading facility.. E-Mini is a trademark of the Chicago Mercantile Exchange.
Erussell Eminis
The emini futures market that is a stock index of 2000 stocks.
Front Month
The current trading month. The S&P 500 Eminis trade 4 contract months: March, June, September, and December.
Futures
Market trading in contracts to buy and sell a particular commodity at a fixed price on a certain date.
Limit Order
An order to enter a position at a set price or better.
Market Order
An order to enter a position at the next available price.
Mini
Refers to a futures contract that has a smaller contract size than an otherwise identical futures contract.
Options
Options are a contract that give the buyer the right, not the obligation to buy or sell the underlying security at a specified price (Strike Price) at a specified date.
Stock Index
An average of a basket of stocks, that are usually weighted, meaning some stocks have more "juice" in the index price than others. Some examples of stock indexes are: S&P 500 Eminis, Erussell Eminis, and Dow Eminis.
Swing Trading
Opposite of daytrading. Swing Traders speculate longer term on prices of stocks, futures, etc.
Tick
The minimum price fluctuation price action can make. In the S&P 500 Eminis the minimum movement is $12.50. So each "tick" is $12.50.



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Important Notice - Risk Disclaimer:
Notice/Warning: This notice cannot and does not disclose or explain all of the risks and other significant aspects involved in trading FUTURES, but you should particularly note the following:

Under margin trading conditions even small market movements may have great impact on the customer's trading account. You must consider that if the market moves against you, you may sustain a total loss greater than the funds deposited. You are responsible for all the risks and financial resources you use and for the chosen trading system. It is important that you should not engage in trading unless you understand the nature of the transaction you are entering into and, the true extent of the exposure to the risk of loss.

This product may not be suitable for all investors; therefore if you do not fully understand the risks involved, you must seek independent advice. All trading strategies are to be used at your own risk. Traders Education LLC is not responsible for any losses incurred as a result of using any of our trading strategies/software. The AutoTrader software should never be left unattended due to many variables outside of your control such as computer or data failure, power outages, position mismatches, network problems, etc. Past performance is no guarantee of future returns. This software should not be relied upon as advice or construed as a recommendation of any kind. It is your responsibility to confirm and decide which trades to take. Trade at your own risk.

Commodity Futures Trading Commission (CFTC) Rule 4.41
HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN; IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK OF ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL WHICH CAN ADVERSELY AFFECT TRADING RESULTS. THESE PERFORMANCE TABLES AND RESULTS ARE HYPOTHETICAL IN NATURE AND DO NOT REPRESENT TRADING IN ACTUAL ACCOUNTS.