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.
