(Chart courtesy of optionsHOUSE )
Trading in the futures market is calm as Christmas approaches.
ESH6 (March '16) S&P 500 e-mini futures bottomed at 1995.25 yesterday and peaked at 2016.25. That 21-point range is almost half of Friday's 37.5-point move, which in turn was smaller than the 42.5 difference between Thursday's high and low.
ES is especially useful in this environment because it trades virtually around the clock, not just during normal market hours. And with each point representing $50 in client accounts, they can still make plenty of money from the swings that do occur. The initial margin requirement to place a bet is $5,060.
ES tracks the most popular stock index in the world, settling in cash on a quarterly basis. The S&P 500, whose big holdings include Apple, Microsoft, and General Electric, has been range-bound for more than a year following big rallies in 2013 and 2014. Its recent weakness was triggered by a selloff in commodity prices and as investors prepared for the Federal Reserve to raise interest rates for the first time since 2006.
For more information on futures, please visit The Futures Institute (Powered by CME Group) .
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