• Skip to primary navigation
  • Skip to content
  • Skip to footer
StoneX®

Trade Futures, Spreads and Options with Confidence.

Top Navigation

  • Open a Futures Account
  • Sign Up
  • Log in
  • 1.800.800.3840

Primary Navigation Menu

  • About
    • Who We Are
    • Services
    • Risk Disclosure
    • COVID-19
  • Trade
    • Broker-Assisted
    • Self-Directed / Online
    • Request Pricing
  • Hedge
    • Ag Marketing Plan
    • WASDE Analysis
    • Grain Resources
    • Livestock / Dairy Resources
    • Request Pricing
  • Invest
    • Automated Strategies
    • Managed Futures
    • Request Pricing
  • Advisories
    • GENERAL / FUNDAMENTAL
      • DT Newsletter
      • Insider Market Advisory
      • Turner’s Take Newsletter & Podcast
    • TECHNICAL ANALYSIS
      • The Cullen Outlook
      • Data Feed Trade
      • Jarboe Trading Journal
      • Trade Spotlight
    • AG MARKETING
      • Cattleman’s Advisory
      • Technical Ag Knowledge
      • Turner’s Take Ag Marketing
    • THIRD-PARTY RESOURCES
      • CFRN
      • Moore Research Center, Inc. (MRCI)
      • OptionWorks®
      • TASMarketProfile.com
  • Education
    • CME Group Resource Center
    • CME Group Offers
    • Small Exchange Resources
    • Guides
    • Frequently Asked Questions
    • Order Entry Handbook
  • Blog
    • Futures 101
    • Ag Marketing
    • Tips & Strategies
    • Trading Advisories
  • Resources
    • Trading Software
    • Quotes and Charts
    • Futures Calendars
    • Contract Specifications
    • Margin Requirements
    • Futures Calculator
  • Accounts
    • Apply
    • Access My Account
    • Funding
  • Contact
 

Trading Small Cap Stocks with E-Mini Russell 2000 Futures

August 13, 2020 by Daniels Trading| Tips & Strategies

If you’re interested in maximizing risk and reward, look no further than the Russell 2000 index. Comprising equity offerings nicknamed the “small caps,” this asset class features the utmost in growth potential for the U.S. equities markets. If you’re an aspiring futures market gunslinger, Micro E-mini and E-mini Russell 2000 futures listed on the Chicago Mercantile Exchange (CME) may be just the markets for you.

What Is the Russell 2000?

By definition, a small cap stock is one with an aggregate market capitalization that falls between US$250 million and US$2 billion. Accordingly, the Russell 2000 features the lower 2,000 offerings of the broader Russell 3000 index―the crème de la crème of American small caps.

The beauty of the Russell 2000 is that it provides maximum exposure to the growth potential of U.S. stocks. A few leading components of the index are Conformis Inc. (CFMS), Digital Turbine Inc. (APPS), and Kodiak Sciences Inc. (KOD). If these names fail to ring a bell, don’t worry. Remember, Russell 2000 companies are up-and-comers, not the Apples (AAPL) and Amazons (AMZN) of the world.

Whereas stock trading is great for traditional buy-and-hold investors, equities index futures are ideal for active traders. The E-mini DOW 30, E-mini S&P 500, and E-mini NASDAQ 100 are fantastic offerings for those interested in tracking the major U.S. stock indices. However, for people who have a receptive attitude toward risk and have their sights set on extraordinary rewards, the Russell 2000 is the quintessential trading venue.

Want to learn more about E-mini trading basics? Read our guide, Introduction to  E-Mini Stock Index Futures >>

COVID-19 and the Russell 2000

Wherever there are large returns, there’s added risk. And if we’ve learned anything from the COVID-19 pandemic of 2020, it’s that unimaginable market moves are possible. In the case of the Russell 2000 Index, Q1 and Q2 2020 featured unprecedented volatility and a historically wide trading range.

Amid the COVID-19 pandemic, the Russell 2000 was a textbook example of an “unhinged” market. According to the Financial Times, approximately 42 percent of Russell 2000 companies failed to turn a year-over-year profit following the early stages of the 2020 COVID-19 pandemic.

Going into Jan. 1, 2020, this was an unthinkable statistic. However, global lockdowns fostered an unprecedented economic downturn, prompting Russell 2000 futures to struggle mightily. In fact, during March 2020, September E-mini Russell 2000 futures plunged by 22.5 percent, pacing losses of the E-mini DOW, E-mini S&P 500, and E-mini NASDAQ.

In turbulent markets, it’s all about selecting the proper leverage for any given trade. To do so in the American equities indices, both the Micro E-mini and E-mini Russell 2000 are useful. Here’s a look at the key contract specifications of each:

Contract Symbol Tick Value Intraday Margin
E-mini Russell 2000 RTY $5.00 $1,000.00
Micro E-mini Russell 2000 M2K $0.50 $100.00

One of the great things about futures trading is that there’s a market and a product for everyone. No matter your capital resources, trading Russell 2000 futures during spring 2020 was possible via the E-mini Russell 2000 or Micro E-mini 2000.

Interested in Learning More About Russell 2000 Futures?

In the modern marketplace, risk management is a science. Subsequently, stocks, bonds, currencies, and futures are common components of most diversified portfolios. Nonetheless, if you’re interested in pursuing extraordinary returns via U.S. equities, look no further than E-mini or E-micro Russell 2000 futures.

To learn more about how to trade the Russell 2000 and other E-mini stock index futures, check out Daniels Trading’s online trading guide Introduction to E-mini Stock Index Futures. In it, you’ll find insights for engaging the world’s premier small, medium, and large cap equities markets.

Want to learn more about E-mini trading basics? Read our guide, Introduction to  E-Mini Stock Index Futures>>

Filed Under: Tips & Strategies

About Daniels Trading

Daniels Trading is division of StoneX Financial Inc. located in the heart of Chicago’s financial district. Established by renowned commodity trader Andy Daniels in 1995, Daniels Trading was built on a culture of trust committed to a mission of Independence, Objectivity and Reliability.

Risk Disclosure

The StoneX Group Inc. group of companies provides financial services worldwide through its subsidiaries, including physical commodities, securities, exchange-traded and over-the-counter derivatives, risk management, global payments and foreign exchange products in accordance with applicable law in the jurisdictions where services are provided. References to over-the-counter (“OTC”) products or swaps are made on behalf of StoneX Markets LLC (“SXM”), a member of the National Futures Association (“NFA”) and provisionally registered with the U.S. Commodity Futures Trading Commission (“CFTC”) as a swap dealer. SXM’s products are designed only for individuals or firms who qualify under CFTC rules as an ‘Eligible Contract Participant’ (“ECP”) and who have been accepted as customers of SXM. StoneX Financial Inc. (“SFI”) is a member of FINRA/NFA/SIPC and registered with the MSRB. SFI does business as Daniels Trading/Top Third/Futures Online. SFI is registered with the U.S. Securities and Exchange Commission (“SEC”) as a Broker-Dealer and with the CFTC as a Futures Commission Merchant and Commodity Trading Adviser. References to securities trading are made on behalf of the BD Division of SFI and are intended only for an audience of institutional clients as defined by FINRA Rule 4512(c). References to exchange-traded futures and options are made on behalf of the FCM Division of SFI.

Trading swaps and over-the-counter derivatives, exchange-traded derivatives and options and securities involves substantial risk and is not suitable for all investors. The information herein is not a recommendation to trade nor investment research or an offer to buy or sell any derivative or security. It does not take into account your particular investment objectives, financial situation or needs and does not create a binding obligation on any of the StoneX group of companies to enter into any transaction with you. You are advised to perform an independent investigation of any transaction to determine whether any transaction is suitable for you. No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior written consent of StoneX Group Inc.

© 2023 StoneX Group Inc. All Rights Reserved

Subscribe To The Blog

Footer

Site Navigation

  • Frequently Asked Questions
  • About Us
  • Customer Reviews
  • Contact Us
  • Futures Blog
  • Open a Futures Trading Account
  • Media Resources
  • Fund Your Account
  • Legal Notices

Contact Us

StoneX Financial Inc.
Daniels Trading Division
230 South LaSalle Suite 10-500
Chicago, IL 60604
+1.312.706.7600 Local / Int'l
+1.800.800.3840 Toll-Free
+1.312.706.7605 Fax

Connect with Us

Trustpilot
Risk Disclosure

The StoneX Group Inc. group of companies provides financial services worldwide through its subsidiaries, including physical commodities, securities, exchange-traded and over-the-counter derivatives, risk management, global payments and foreign exchange products in accordance with applicable law in the jurisdictions where services are provided. References to over-the-counter (“OTC”) products or swaps are made on behalf of StoneX Markets LLC (“SXM”), a member of the National Futures Association (“NFA”) and provisionally registered with the U.S. Commodity Futures Trading Commission (“CFTC”) as a swap dealer. SXM’s products are designed only for individuals or firms who qualify under CFTC rules as an ‘Eligible Contract Participant’ (“ECP”) and who have been accepted as customers of SXM. StoneX Financial Inc. (“SFI”) is a member of FINRA/NFA/SIPC and registered with the MSRB. SFI does business as Daniels Trading/Top Third/Futures Online. SFI is registered with the U.S. Securities and Exchange Commission (“SEC”) as a Broker-Dealer and with the CFTC as a Futures Commission Merchant and Commodity Trading Adviser. References to securities trading are made on behalf of the BD Division of SFI and are intended only for an audience of institutional clients as defined by FINRA Rule 4512(c). References to exchange-traded futures and options are made on behalf of the FCM Division of SFI.

Trading swaps and over-the-counter derivatives, exchange-traded derivatives and options and securities involves substantial risk and is not suitable for all investors. The information herein is not a recommendation to trade nor investment research or an offer to buy or sell any derivative or security. It does not take into account your particular investment objectives, financial situation or needs and does not create a binding obligation on any of the StoneX group of companies to enter into any transaction with you. You are advised to perform an independent investigation of any transaction to determine whether any transaction is suitable for you. No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior written consent of StoneX Group Inc.

© 2023 StoneX Group Inc. All Rights Reserved

  • Risk Disclosure
  • Privacy Policy
  • California Residents Privacy Notice
  • Terms of Use
  • Back to top