Micro futures for the major indices are about to launch. Here's everything you need to know

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Micro futures for the major indices are about to launch. Here's everything you need to know (via CNBCFuturesNow)

. And if you ask professional traders, there are major benefits to trading these limited-risk contracts.

"If you're a retail trader who is looking to branch into different markets that you haven't traded in yet, ... you can structure a trade that's of less risk while you get your feet wet," Iuorio said. "The second thing ...

"A lot of times, market noise can wipe you out even though you had a really nice medium-term direction" when it comes to day trading, Iuorio said. "Being able to present your exposure with less size lets you sleep at night and widen your stop and widen your take-profit and not blow up your risk parameters."

"I think it will be very, very big," he said in the same "Futures Now" interview. "Because they are fungible, there will not be any penalty as to liquidity. These will be just as liquid as every other contract. Jim says it's a big deal. I think it's a great deal, largely because the sizing means that if you are a trader who's using futures, you will be able to do some of the things we'd love to talk about, and that is add to a winner.

 

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