A 1 RTY contract, referring to the E-Mini Russell 2000 Index futures contract, has a contract point value of $50 USD. This means that for every one-point movement in the underlying Russell 2000 Index, the value of the RTY contract changes by $50.
Understanding the RTY Contract Point Value
The RTY symbol represents the E-Mini Russell 2000 Index futures contract. In futures trading, the "contract point value" or "multiplier" is a crucial component that determines the monetary value of each point movement in the underlying index. It's how you calculate potential profits or losses.
For example:
- If the Russell 2000 Index moves up by 10 points, the value of one RTY contract would increase by $500 (10 points * $50 per point).
- Conversely, if the index drops by 5 points, the contract's value would decrease by $250 (5 points * $50 per point).
This contract point value is a fixed term for the RTY contract, unlike the index price itself, which constantly fluctuates.
E-Mini Russell 2000 Futures Contract Specifications
To provide a clearer understanding, here's a comparison of the Standard E-Mini Russell 2000 (RTY) contract with its Micro counterpart (M2K), based on common specifications:
| Feature | Standard E-Mini Russell 2000 (RTY) | Micro E-Mini Russell 2000 (M2K) |
|---|---|---|
| Symbol | RTY | M2K |
| Exchange | CME Globex | CME Globex |
| Contract Point Value | $50 USD | $5.00 USD |
| Minimum Price Fluctuation | 0.10 points | 0.10 points |
| Dollar Value per Minimum Move | $5.00 (0.10 * $50) | $0.50 (0.10 * $5.00) |
As seen in the table, the RTY contract is the larger, standard version, with a point value ten times greater than the Micro RTY (M2K) contract. This difference in point value directly impacts the capital required and the potential profit/loss per point movement.
Key Characteristics of RTY Futures
The E-Mini Russell 2000 Index futures contracts are popular instruments for trading or hedging exposure to the Russell 2000 Index, which tracks the performance of 2,000 small-cap U.S. companies. Key characteristics include:
- Underlying Asset: The Russell 2000 Index, a market-capitalization-weighted index that measures the performance of the small-cap segment of the U.S. equity market.
- Exchange: Traded on the CME Globex electronic trading platform, offering extensive liquidity and accessibility.
- Liquidity: E-Mini futures generally offer high liquidity, allowing traders to enter and exit positions efficiently.
- Minimum Price Fluctuation: The smallest increment by which the price of the contract can change is 0.10 points, which translates to a $5.00 change per contract (0.10 points * $50 per point).
For more detailed information on futures contracts like the RTY, you can refer to resources such as the NinjaTrader's E-Mini Russell 2000 Index Futures Contracts specifications.
