Tradovate Futures Trading Blog

Discover an Alternative Way to Trade Futures

Posted by Tradovate on April 6, 2021 at 9:15 AM

Tradovate Micro options blog post


With the volatility of ES & NQ markets, traders can easily get into the market action by trading standard S&P & Nasdaq-100 futures contracts. But instead of paying the full cost of the standard futures, what if you could pay only a fraction of the cost, but still have the ability to be in those markets? What if you could pay even less than that and not have the risk of owning the underlying future at all? 


When CME Group introduced Micro Options last August, they gave traders a new way to invest. They are 1/10th the size of their E-mini counterparts, and are a more cost effective way to get into the market.

Micro Options Have Traded Over 725K Contracts Since Launch

There’s been plenty of trading volume on these contracts, since launch last August, nearly 725K* Options contracts have traded for Micro E-mini S&P 500 & Nasdaq-100 futures.These options offer quarterly, weekly and monthly expirations, so you can combine them into a trading strategy that works for you.


Trading Micro Options offers 3 Key Features

  1. Trade With More Precision - Scale exposure up or down with greater control with 1/10th the size of the E-mini counterpart. This can give you control over the risk/reward ratio of your investment.


  2. Add Flexibility for Building Strategies - No matter your view of the markets in the short- or long-term, you have a choice of weekly, monthly and quarterly expirations. You can use the expiration term that helps you manage risk based on your market outlook and expand the type of strategies you can apply.


  3. Access Micro E-mini Futures Liquidity - These options settle into liquid E-mini futures, so your lower option premium can actually deliver futures to you without the upfront cost of the futures contract.

Trading Futures Options Also Has Risks

  • Depending on the type of option strategy you invest in, it could expose the investor to unlimited losses. For example, the option seller (writer) can incur losses greater than the price of the contract.
  • Need to predict the short-term direction of the market in order to take advantage of short-term or near-term options contracts.
  • Decide when you should get out of an options contract, especially if the outcome is not what you expected, prior to the expiration date.

Micro E-mini & Nasdaq-100 Contract Specifications

Micro E-mini & Nasdaq-100 Contract Specifications

Micro E-mini & Nasdaq-100 Minimum Price Increments

Micro E-mini & Nasdaq-100 Minimum Price Increments


Want to learn more about Micro Options?  

Visit our Micro Options Education page.


*Data through 2/5/21, combined volume for both Micro ES & NQ contracts.


Before trading options on futures, please review the RISK DISCLOSURE STATEMENT FOR FUTURES AND OPTIONS.



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