To The Moon

I. How did @666 Dazi make $1.55 million?

Last week, the US stock market experienced a sharp decline followed by a significant rebound. This historic market movement caused panic among many investors.

A futures trader named 666 Dazi posted a screenshot early on Friday, April 12, showing a profit of $1.55 million. He is likely another mysterious big shot.

From his brief sharing, it appears that he made a profit of $1.55 million by shorting one contract of $E-mini Nasdaq 100 - main 2506(NQmain)$ .

It is worth noting that on April 10, the Nasdaq fell by 852 points, rose by 2,121 points on April 9, and fell by 1,165 points on April 4. The historic volatility of the market last week was evident to all.

In the futures market, such volatility can indeed lead to significant wealth fluctuations.

However, such extreme volatility is not something that most people can bear. For those participating in regular futures contracts, the costs are high, and the leverage is substantial, which many investors may not be able to handle.

For example, as of April 16, the initial margin for a long position in a $E-mini Nasdaq 100 - main 2506(NQmain)$ contract is $7,600 (Note: If the bet is wrong, and the available funds in the account are depleted in a short period, and the margin is not replenished within a certain time, there is a risk of being forcibly liquidated).

The price of one contract is as high as $836,000. For this contract, a one-point fluctuation in the corresponding index results in a $2,000 price movement in one contract.

In comparison, the advantages of micro futures are very evident. Take the $Micro E-Mini Nasdaq 100 - main 2506(MNQmain)$ contract as an example. The cost is only $836, which is one-tenth of that of a regular contract, and the margin is around 90%. For a one-point fluctuation in the corresponding index, the contract price fluctuates by only $2.

For investors who wish to participate in futures trading based on trends and personal judgment, starting with micro contracts may be a good choice. Both types of contracts are traded 24 hours a day. Moreover, the current advantage of mini futures is that they are commission-free.

Notes:

• Standard Futures: Suitable for investors or institutions with substantial capital, high risk tolerance, and in-depth market research.

• Mini Futures: Suitable for small and medium-sized investors with limited capital, lower risk tolerance, and a desire to lower the investment threshold.

II. Beginner's Guide: Mini Futures Contracts with Zero Trading Commission, Easy to Get Started

Below, we have compiled a comparison of the costs and price fluctuations of the futures contracts and mini futures contracts for the four most liquid indices.

We hope this will help our friends who are not very familiar with futures gain a better basic understanding.

It can be seen that, basically, the cost and margin of mini contracts are one-tenth of those of regular futures contracts, and the profits generated by the corresponding fluctuations are also one-tenth.

Do you have experience trading futures? Do you have any questions about futures?