Unfortunately, the highly leveraged and volatile nature of the commodity markets has a tendency to lure traders into dreams of windfall profits. Yet the net result of most trading accounts is inevitable losses. In most circumstances, traders are simply overleveraged or undercapitalized. The lack of available margin simply leaves too little room for error to facilitate potential trading rewards. However, an often-overlooked manner of alleviating the disadvantage of being a smaller trader is the use of the CME Group’s suite of e-micro futures contracts and the mini grains. Click below to view an excerpt from Chapter 12 discussing the characteristics and opportunities for scale trading these smaller contract sizes offer commodity traders.
