NASDAQ Emini – How to Trade the NQ Futures

Since their introduction in 1997 index futures traders have traded the NASDAQ emini contract with exceptional success, attracted to their liquidity and simplicity. Commonly known as the NQ emini, traders have learned that just about any type of short term trading system or method can be used successfully to profit with this mini contract.

Designated a emini since the mini NQ is one fifth the size of the larger or full size NASDAQ futures contract. Margin requirements are much smaller which is the main reason emini trading has increased in popularity with the amount of contracts traded growing each year. When the NASD raised account minimums to $25,000 for stock day trading accounts, many stock traders moved over to emini index futures trading since margins are lower and found the NQ to be an exceptional instrument for day trading. We have many more Stock Market Investing Articles Now Available.

Trading Symbol And Expiration
The NASDAQ emini trades in quarter points with each quarter equating to a profit or loss of $5 and a full point yielding a profit or loss of $20. Traded on the Chicago Mercantile Exchange Globex, emini contracts expire four times per calendar year with each expiration month designated by a unique letter found in the mini NQ symbol.

March = H
June = M
September =U
December = Z

For example, if a NQ emini contract will be expiring in September of 2009 the symbol would be NQ09U. NQ designates the contract as the NASDAQ emini contract; 09 identifies the year the contract will expire. U is the identifier for which month the contract is set to expire, in this case September is the expiration month.

NQ Trading Methods
Several different methods can be utilized to trade the NQ emini with the most popular methods being traditional day trading and lighting fast scalp trading. Traders use different methods to profit with NQ contracts with some using chart patterns in tandem with oscillators and other popular indicators such as the Stochastic and Relative Strength Indicator. Others will only use time and sales waiting on specific levels of support and resistance with pivot points.

Scalp trading is used by experienced players to enter and exit the market quickly, focusing only on scalping one or two points. In and out of the market rapidly, scalp traders may execute many trades throughout the daily session while a day trader may only execute one or two trades during the entire market day.

Whichever method is chosen, the mini NQ lends itself very well to short term trading methods. With excellent volatility and liquidity, it is not uncommon to profit several times everyday for proficient players. It is recommended however, that participants have a grasp and clear understanding of market dynamics and internals before beginning a trading career utilizing a proven trading system. NASDAQ emini trading offers an opportunity for disciplined and focused traders to profit everyday in the financial markets. We have many more Stock Market Investing Articles Now Available.