Stocks

What are Micro EURO STOXX 50® Index Futures?

Micro EURO STOXX 50 Index futures from the Eurex Exchange are new and smaller-sized stock index futures contracts based on the most popular stock indices in Europe. Traders can now have the ability to trade micro-sized contracts on the key stock index market in the Eurozone using Micro EURO STOXX Index futures.

What is the EURO STOXX 50 Index?

The EURO STOXX 50 is a stock index of major Eurozone stocks, first published in 1998. Companies from nine countries are represented in the EURO STOXX 50 Index: France, Germany, Netherlands, Belgium, Spain, Italy, Ireland, Finland and Luxembourg. The EURO STOXX 50 is a market capitalization-weighted index, which means the companies with larger market caps will have a greater weight on the index. Measured by market capitalization, the top three countries in the EURO STOXX 50 Index are France, Germany and the Netherlands. The EURO STOXX 50 Index represents approximately 60% of the total market cap of all companies in the Euro Stoxx Total Market Index, so when you trade the EURO STOXX 50 Index you have a balanced exposure to the Eurozone. Some of the top companies in the EURO STOXX 50 index include well known firms such as LVMH, SAP, AB InBev, Sanofi, Total, BNP Paribas, Volkswagen, Daimler, BASF and Philips.

What are Micro EURO STOXX 50 Futures?

Micro EURO STOXX 50 Index futures are a smaller version of the liquid and popular EURO STOXX 50 Index futures. The Micro EURO STOXX 50® futures contract size is 1 Euro multiplied by the index value, while the EURO STOXX 50 Index futures contract size is 10 Euros multiplied by the value of the index, making the Micro EURO STOXX 50 futures 1/10th the size of EURO STOXX 50 futures.

For example, if the index level of the EURO STOXX 50 is 4,030:

  • Micro EURO STOXX 50 futures: 1 Euro * 4,030 index level = EUR 4,030 notional value
  • EURO STOXX 50 futures: 10 Euro * 4,030 index level = EUR 40,300 notional value
  • To observe in US Dollars, if the USD/EUR rate is about 1.20, then the notional value of Micro EURO STOXX 50 futures in USD is about $3,358

Why Trade Micro EURO STOXX 50 Futures?

Launched on April 19, 2021 by Eurex, Micro EURO STOXX 50 futures allow traders to participate in the Eurozone stock market with a significantly reduced financial commitment. The micro-sized contracts are identical to the standard EURO STOXX 50 futures except for the contract size.

The contract size of Micro EURO STOXX 50 futures is 1 Euro, making the contracts ideal instruments for those who wish to gain exposure to the major European stock market with less capital.

Micro EURO STOXX 50 futures offer traders the opportunity to trade both on the long side and the short side of the market. These contracts are listed on the Eurex Exchange alongside other popular futures and options. The trading hours are 1:10am to 10:00pm CET (Central European Time).

Micro EURO STOXX 50 contracts trade on the Eurex electronic system on a central limit order book (“CLOB”), meaning all traders see the same bid, offer, price and size at the same time. These contracts clear at the Eurex Clearinghouse.

The smaller contract size of EURO STOXX 50 futures offers a significant benefit for traders and allow for accessing popular markets with a smaller capital commitment.

Why Trade Micro EURO STOXX 50 Futures?

  • Cost-efficient Products – Micro contracts with its small contract size and low margin requirements are the ideal trading instrument for global investors with smaller-sized portfolios
  • Trade Both Sides of the Market with Ease – Traders can speculate on the EURO STOXX 50 Index both on the long and short side with no uptick rule or short-selling restrictions
  • Trade Nearly Around the Clock – Micro EURO STOXX 50 futures traders can participate in the market nearly 21 hours a day, 5 days a week. This additional opportunity empowers futures traders to quickly react to economic announcements and political news, providing both convenience and peace of mind
  • Trade on a Centralized Marketplace – Micro EURO STOXX 50 futures are traded on the Eurex platform on a single central limit order book which means all traders see the same price, bid, offer and size at the same time. Additionally, these contracts clear at the Eurex Clearinghouse
  • Leverage Your Capital – Micro EURO STOXX 50 futures offer leverage and futures buying power enables you to control a notional contract value with a relatively smaller amount of capital
  • Trade Highly-Liquid Markets – Eurex futures markets trade on a single central limit order book with many participants including liquidity providers in order to provide liquid and active markets. Since Micro EURO STOXX 50 futures are based on the same indices and Eurex’s standard contracts which are already highly liquid, the Micro contracts will benefit from spread trading and arbitrage and will have access to this large liquidity pool

Micro EURO STOXX 50 Futures Contract Specs

  • Exchange: EUREX
  • Class: Futures
  • Trading Symbol: FDXS
  • Contract Size: 1 Euro * EURO STOXX 50 index
  • Pricing Unit: Euro
  • Tick Size: 0.50 index point
  • Tick Value: 0.50 Euro
  • Intraday Margin: $100
  • Contract Months: First 3 quarterly months
  • Trading Hours: 1:10am to 10:00pm CET (Central European Time)
  • Initial Margins: $311
  • Position Limit: 25

Key Economic Reports and News Which Can Impact Micro EURO STOXX 50 Index Futures

  • European Central Bank (ECB) Meetings – The ECB holds monetary policy meetings every six weeks. The ECB sets its benchmark refinancing rate and its deposit rate at these monetary policy meetings. Changes in these rates or even changes in guidance can impact many markets and expectations of interest rates, foreign exchange rates and inflation which may also impact prices of Micro EURO STOXX 50 futures.
  • Consumer Price Index (CPI) – Released each month by major countries in the Eurozone, this report measures inflation and cost-of-living changes that can impact asset prices including Micro EURO STOXX 50 futures
  • Government Spending and Budget Deficits – Trends in government spending and budget deficits along with increasing monetization of debt may impact the value of assets including Micro EURO STOXX 50 futures
  • World Political Events – Major political news may impact the value of interest rates, currencies and asset prices including Micro EURO STOXX 50
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