Guide to trading EUREX Micro Contracts.
Micro EURO STOXX 50 (FSXE)
Micro DAX (FDXS)
Micro SMI (FSMS)
As explained in this Investopedia article Eurex Exchange (funded in 1998 and owned by Deutsche Börse AG, so Germany) is actually the largest futures and options market in the world: settling 1.6 million contracts annually, and providing access to traders connected from 700 locations worldwide.
The Futures Industry Association‘s survey from 2015 places Eurex to the third place for derivatives exchanges by contract volume…anyhow..
What are Index Futures?
Ok I got you, let’s take a step back: futures contracts are used by traders to buy or sell a product today, and be settled in the future.
Index futures therefore can be used to speculate on index such as S&P500, DAX, etc.. for much more info read this Investopedia Index Futures article.
What are DAX, EURO STOXX 50 and SMI indexes?
DAX, code FDAX
It represents 30 of the largest liquid German companies traded on the Frankfurt Exchange, that go from insurance to pharmaceutical and athletic apparel: such as Volkswagen, Bayer, BMW, Adidas.
Contract value: 25 €, per point 5 €.
STOXX 50, code FESX
Stoxx 50 is an index that represents the 50 largest blue chip European companies, holding stocks from Italy, Finland, France, Belgium, Germany, Ireland, Luxembourg, the Netherlands, and Spain.
Contract value: 10 €, per tick 1 €.
SMI, code FSMM
The Swiss Market Index and, yes you got it, is the index representing Switzerland’s 20 largest and most liquid stocks.
Contract value: 10 CHF.
Fortunately Eurex created the more affordable Mini version of DAX.
MINI DAX, code FDXM
Contract value: 5 €, per tick 1 €.
What are Micro DAX, Micro EURO STOXX 50 and Micro SMI?
As recently announced in this article by EUREX the Micro Futures on DAX®, EURO STOXX 50® and SMI® Indices will be live on 19th of April 2021.
These contracts mirror the exact same price as the benchmark contract but differ in terms of contract size only: they are basically much more affordable to trade.
Micro Futures DAX® , code FDXS
contract value: 1 €.
Micro futures EURO STOXX 50® , code FXSE
contract value: 1 €, per tick 0.50€.
Micro Futures SMI® index, code FSMS
contract value: 1 CHF , Swiss franc.
The other specs for these contracts are in line with the existing contracts: same trading hours, same trading calendar, same expiration date, settlement etc.
What’s really important now is to find out how expensive it will be to trade these:
– commissions fees?
– Slippage and spread?
I will update this as soon as these information are available, if you do have some info please do not hesitate in sharing these with me, I will most appreciate it.
How can you trade European Futures?
I’m confident and I look forward to have the Funders offering also Micro DAX in their challenges!
These are all the evaluation programs offering European Futures.