الإيميني هو نوع من الروح أو الكيان الروحي الذي يُعتقد أنه يُلهم أو يساعد الشخص في حياته. يُستخدم مصطلح الإيميني بشكل خاص في سياقات روحية أو دينية، حيث يشار إليه كرفيق روحي أو كيان يُعتقد أنه يمنح المعرفة أو الإلهام. إن مفهوم الإيميني قد يختلف من ثقافة لأخرى، وغالبًا ما يُربط بممارسات روحية أو تواصل مع العوالم الروحية.

Definition and Example of E-mini

The E-mini is a futures contract that is equivalent to one-fifth the size of a standard futures contract. Typically, futures contracts for indexes involve large sums of money, so the E-mini serves as a means for investors who wish to trade smaller amounts.

How Does E-mini Work?

The E-mini is a type of futures contract, so it operates the same way as futures contracts. When you enter into a futures contract, you agree to buy or sell a specific asset at a predetermined price on an agreed-upon date.

Unlike commodity futures contracts that involve the delivery of actual goods, such as grains or oil, index futures contracts are settled in cash. When the delivery time arrives, both parties in the contract exchange cash to settle the transaction.

Investors typically close their positions by opening an equivalent opposite position. For example, if you sell one E-mini, you can close your position by buying one similar E-mini. You make or lose money based on the prices at which you bought and sold the contracts.

One reason E-minis are popular is that they allow you to use leverage to control a significantly larger amount of money than your account balance would normally permit. Another reason for the popularity of E-minis is that they make futures contracts more accessible.

You can also use E-minis to hedge against declines in the stock market. By selling an E-mini, you can profit when the S&P index drops, and the leverage involved means your profits will be relatively larger compared to the decline in value of the index. At the same time, your losses will be magnified if the index rises in this scenario, so there is risk.

Advantages and Disadvantages of E-mini

Advantages:

– Leverage increases potential profits.

– High liquidity market.

Disadvantages:

– Leverage also increases potential losses.

– Futures contracts can be extremely complex.

What Does It Mean for Individual Investors?

E-mini contracts and other futures contracts are complex and can be risky. Most investors should probably avoid them.

If you wish to engage in derivative instruments, including those linked to an index like the S&P 500, options are a common way to utilize them. They are less complex and provide a way to leverage your portfolio and bet on your expectations regarding future stock or ETF price movements.

The Moral of the Story:

– E-minis are futures contracts linked to stock indices, the most famous being the S&P 500.

– These contracts are priced at one-fifth the value of typical index futures contracts.

– They allow investors to use leverage to control a larger amount of money.

– E-minis can be used to hedge against downturns in the stock market.

– E-minis are considered complex and risky, so most investors should avoid them.

Sources:

– Charles Schwab. “What Are E-Mini S&P 500 Futures?” Accessed Oct. 15, 2021.

– Charles Schwab. “What Is a Micro E-Mini Future?” Accessed Oct. 15, 2021.

– TD Ameritrade. “How To Trade S&P 500 Futures: A Quick Walk-Through for Investors.” Accessed Oct. 15, 2021.

Source: https://www.thebalancemoney.com/what-is-an-e-mini-5205826