If you’re new to E-mini futures trading, the jargon can be overwhelming. To help you get started with confidence, here’s a simple glossary of 20 must-know E-mini trading terms — explained in beginner-friendly language.
1. E-mini
A smaller version of a standard futures contract, electronically traded on the CME. Common examples include the E-mini S&P 500 (ES) and E-mini NASDAQ (NQ).
2. ES
The ticker symbol for the E-mini S&P 500 futures contract, one of the most actively traded futures in the world.
3. Tick
The minimum price movement an E-mini contract can make. For ES, one tick = 0.25 points = $12.50.
4. Point
In E-mini trading, 1 point = 4 ticks. For ES, each point is worth $50 per contract.
5. Margin
The minimum deposit required to open a trade. E-mini margins vary depending on your broker and whether you’re day trading or holding overnight.
6. Leverage
A feature that lets you control a large contract value with a smaller amount of capital. While it increases profit potential, it also raises risk.
7. CME
Short for Chicago Mercantile Exchange, where E-mini futures are traded.
8. Contract
A standardized agreement to buy or sell an underlying index at a future date. E-mini contracts are sized smaller for accessibility.
9. Expiry
Each futures contract has a set expiration date, usually quarterly (March, June, September, December).
10. Rollover
When traders switch from an expiring contract to a new one, typically a few days before expiry.
11. Going Long
Opening a trade expecting the price to rise.
12. Going Short
Opening a trade expecting the price to fall.
13. Stop-Loss
A risk management tool that closes your trade automatically at a preset loss level.
14. Take-Profit (TP)
A target price where you exit a trade with a profit. Automatically closes the trade once reached.
15. Trading Platform
Software used to place, manage, and monitor trades. Examples: NinjaTrader, TradingView, Thinkorswim.
16. Indicator
A tool used to analyze price data and generate trading signals. Common ones include RSI, MACD, Supertrend, and VWAP.
17. Volume
The number of contracts traded during a time period. High volume indicates high trader interest and better liquidity.
18. Breakout
A price movement above resistance or below support, often followed by sharp volatility.
19. Scalping
A fast-paced trading style aiming to make small profits from quick trades, often within minutes.
20. Swing Trading
A strategy where trades are held from a few days to a few weeks to capture larger market moves.
Final Thoughts
Understanding these terms will help you navigate E-mini futures more confidently and build a solid foundation for further learning. As you grow as a trader, keep revisiting this glossary and expanding your knowledge of more advanced concepts.
Want to go deeper? Explore our tutorials, signal guides, and strategy posts for actionable insights.
Frequently Asked Questions (FAQs)
What is the ES contract in E-mini trading?
It’s the ticker symbol for the E-mini S&P 500 futures — the most popular and liquid E-mini contract.
How much is one tick worth in ES?
One tick = 0.25 points = $12.50 per contract.
What’s the difference between point and tick?
A point is 4 ticks. In ES, 1 point = $50 and 1 tick = $12.50.
Is E-mini trading good for beginners?
Yes — with proper risk management and education, E-minis offer great liquidity and accessibility for new traders.
What platform is best for learning E-mini trading?
Platforms like TradingView, NinjaTrader, or Thinkorswim are beginner-friendly and support E-mini futures.
