S&P 500 Mini

Dictionary Says

Definition of 'S&P 500 Mini'

A derivative contract representing a designated fraction of the trading value of a standard S&P futures or options contract. Designed to expand the group of investors that could afford them, the S&P 500 Minis trade and act much like their pricier peers: the contracts are cash settled, follow the same expiration schedule and trade on the same stock exchanges.

Investopedia Says

Investopedia explains 'S&P 500 Mini'

S&P 500 Mini futures require margin on the part of the investor, while Mini options contracts are priced at 1/10 the value of the underlying S&P 500 index ($100 factor is equivalent to standard options contracts). The Mini futures contracts are marked-to-market daily, and expiration date pricing is determined by the opening price of the underlying index securities on the day of expiration.

Market demand for a product class like this developed as the S&P index grew from the 200-300 level in 1986 (when S&P 500 derivatives were first introduced) to more than 1,000 in 2007, effectively pricing individual investors out of the market as contract sizes grew to over $100,000. With the advent of the Mini, smaller investors can use the same hedging and speculation strategies available to institutional and accredited investors, and with high levels of liquidity and exchange-backed financial integrity.
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'S&P 500 Mini'

  • Adding Alpha Without Adding Risk

    http://www.investopedia.com/articles/optioninvestor/06/addingalpha.asp
    ... With the innovation of smaller contracts like The S&P 500 Mini®, some less-endowed
    investors are now able to implement strategies once available only to ...
  • How To Evaluate A Micro-Cap Company

    http://www.investopedia.com/articles/stocks/07/micro_cap.asp
    ... major exchanges, such as the Dow Jones Industrial Average, the S&P 500 or the ... read
    more on this subject, see Market Capitalization Defined.) Mini Equities By ...
  • Should You Trade Forex Or Stocks?

    http://www.investopedia.com/articles/forex/11/forex-or-stocks.asp
    ... The e-minis, including the e-mini S&P 500, the e-mini Nasdaq 100, the e-mini Russell
    2000 and the mini-sized Dow Futures are traded around the clock on all ...
  • The Everyday Portfolio

    http://stocks.investopedia.com/stock-analysis/2010/The-Everyday-Portfolio-SBUX-CL-PG-K-HSY0121.aspx
    ... Head & Shoulders Shampoo. 3.56%. Kellogg (NYSE:K). Mini Wheats Cereal. 8.79%. Hershey's
    (NYSE:HSY). Twizzlers Nibs Candy. 7.67%. S&P 500 Total Return. N/A. -2.80 ...
  • Are Derivatives Safe For Retail Investors?

    http://www.investopedia.com/articles/optioninvestor/07/derivatives_retail.asp
    ... According to the Chicago Mercantile Exchange (CME), the S&P 500 mini futures contract
    (one-fifth the size of the normal contract) had its tenth anniversary in ...
  • Chip Sector ETF a Short-Term Buy?

    http://stocks.investopedia.com/stock-analysis/moneyshow/ChipSectorETFaShort-TermBuy.aspx
    ... it would take a drop below the lows of the past three days in several of the major
    index ETFs and the 1111-1123 level in the September S&P 500 e-mini futures. ...
  • Covered Call Strategies For A Falling Market

    http://www.investopedia.com/articles/08/covered-call-strategy.asp
    ... leveraged investment. For some indexes, including the S&P 500 and Nasdaq,
    “mini” contracts are available at smaller sizes. (Read ...
  • Did ETFs Cause The Flash Crash?

    http://www.investopedia.com/articles/exchangetradedfunds/11/ets-flash-crash.asp
    ... When a single firm, Waddell & Reed Financial, placed a sell order for E-Mini S&P
    500 futures contracts (one of the two most actively stock index products) the ...
  • Losing To Win

    http://www.investopedia.com/articles/trading/04/051904.asp
    ... If we assume the trader traded one S&P 500 e-mini contract with a margin (risk)
    of $1,800, the profit would have been more than $40,000 after commissions. ...
  • The Secret To Finding Profit In Pairs Trading

    http://www.investopedia.com/articles/trading/04/090804.asp
    ... Two indices that generally trade together are the S&P 500 and the Dow Jones ... In the
    futures market, "mini" contracts - smaller-sized contracts that represent a ...

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