• 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
 

What Are the Benefits of Trading the Small Exchange?

March 12, 2021 by Daniels Trading| Futures 101

For active traders, finding an ideal market to trade is a critical task. Although the best products exhibit liquidity and volatility―two vital attributes―there are many other factors to consider. Regardless of your experience level, it is easy to get overwhelmed.

If you’re feeling hopelessly lost choosing a forex pair, futures contract, or stock to trade, we have good news. The listings available at the Small Exchange have made the game exponentially easier. Let’s take a look at three key benefits of the Smalls and why the Small Exchange is a premier financial destination.

1. Uniform Construction

As any veteran of the capital markets will tell you, trading securities can be difficult. Not only are the markets fickle, but it also takes time and effort to become fluent in how to physically trade them. Forex, futures, debt, and equity products are all unique, but the Smalls eliminate much of the guesswork via uniform construction.

At the Small Exchange, all products are designed with simplicity in mind. The products don’t have unique expiration dates and pricing modules. Each Small contract is the same with respect to the following guidelines:

  • Uniform expiration: Contract expiry for all Smalls is scheduled for the third Friday of the month.
  • Uniform pricing: All Small contracts move in 0.01 increments that are valued at $1.00.

Reduced-size trading provides traders advantages such as enhanced staying power, a multitude of trade management options, and the ability to diversify holdings. Learn more about how bigger isn’t always better in our guide—>>

2. Fully Customizable Granularity

In the arena of active trading, granularity refers to the incremental adjustment of applied leverage up or down. This is one area where the Smalls excel. Their reduced contract size allows for the full customization of any trade’s market exposure.

To illustrate the ins and outs of the Small Exchange’s granularity, assume that you are trading bullish U.S. large-cap stocks. Here are a few products you can buy to secure long-side exposure:

Product Tick Value Intraday/Overnight Margin
E-mini S&P 500 Futures $12.50 $750.00/$11,000.00
Micro E-mini S&P 500 Futures $1.25 $100.00/$1,100.00
Vanguard S&P 500 ETF $0.01 Market price (2/21, $358.00 per share)
Small Stocks 75 $1.00 $475.00/$523.00

*Margins and market prices subject to change

As you can see, there are big differences in the amounts of money needed to buy each of these products. However, the reduced margins of the Small Stocks 75 enable traders to routinely increase position size or hold positions through the closing bell. To accomplish this with Micro E-mini or E-mini S&P 500 futures, the cost is much higher. And, although the Vanguard S&P 500 ETF offers ownership, the capital needed to generate comparable dollar-for-dollar returns measures in the thousands, not hundreds.

3. Diversification

The lineup of contracts listed on the Small Exchange is best described as diverse. Even though there are only six unique products, all of the world’s major asset classes are represented. Here is a brief synopsis of the Smalls:

Contract Description
Small Technology 60 (STIX) Most active stocks from the tech sector
Small Stocks 75 (SM75) Most active stocks from the five major sectors
Small U.S. Dollar (SFX) USD vs. seven leading global currencies
Small Precious Metals (SPRE) A weighted basket of gold, silver, and platinum
Small 10YR U.S. Treasury Yield (S10Y) Based on U.S. 10-year note yields
Small Global Oil (SMGO) An index representative of global crude oil

Note: Contract weights and compositions are subject to change

When it comes to diversifying your portfolio, look no further than the Smalls. Each contract provides traders direct and comprehensive exposure to the underlying asset class. No longer do you have to open a forex, futures, and equity account to diversify risk―on the Small Exchange, you’re free to mix and match positions as you deem fit.

Are You Ready to Trade the Small Exchange?

Simple is almost always better. With the Small Exchange, participants enjoy a user-friendly, exceedingly tradable lineup of products. Click here to learn more about what the Smalls and Daniels Trading can do for you.
New call-to-action

Filed Under: Futures 101

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