You don’t have to fly to Frankfurt this summer to trade the European markets.
Eurex has recently introduced new micro futures contracts on major international benchmarks like the German Dax and Euro STOXX 50 index. The new Eurex products join micros on CME products like the S&P 500, Nasdaq-100 and Bitcoin.
Micros are smaller versions of major futures products. They require less capital, letting investors take smaller positions. They can also be used to incrementally hedge risk in the underlying index.
The German Dax tracks 30 major companies in Europe’s biggest economy, including Siemen’s, Adidas and Allianz. Customers could already trade it with the standard DAX futures (@FDAX) or the Mini-Dax futures (@FDXM). However their margin requirements may be prohibitive for individual investors. FDAX, for example, has a 30,210 euro requirement (roughly $35,000) and FDXN requires 6,042 euros.
The new micro contracts (FDXS) reduce that amount to 1,208 euros, or about $1,425.
Euro STOXX 50
Euro STOXX 50 covers the broader region, mostly holding French and German companies. Its members include firms like L’Oreal, Sanofi and LVMH. Airbus, Banco Santander and ASML are also on the list. British stocks aren’t in the index.
The Euro STOXX 50 already had normal futures under the symbol FESX, with a margin requirement of 2,990 euros. The new micros will require just one-tenth that amount of capital and use the symbol FSXE.
Remember that margin requirement is the amount of capital an investor needs to take a position in a futures contract. See TradeStation’s margin requirements page for more.
Both the Micro DAX and Micro Euro STOXX 50 expire quarterly, three quarters into the future. Their last trading day is the third Friday of the relevant month. Both have trading hours of 1:10 a.m. Central European Time (CET) to 10 p.m. CET. That’s 7:10 p.m. EST (the previous evening in New York) through 4 p.m. EST.
Customers trading these products also require a separate subscription to Eurex market data. See our market data page for more.
In conclusion, the futures market continues to evolve. Recent years have brought a shift to smaller and more flexible products like CME’s micro S&P 500 and Nasdaq-100 contracts. Now investors interested in major European indexes can enjoy similar benefits with Eurex’s new Micro DAX and Micro Euro STOXX 50.
Key Points About Eurex Micro Futures
Expiration month codes: March (H), June (M), September (U), December (Z)
Current on-the-run contract Micro DAX contract: September 2021 (FDXSU21)
Current on-the-run contract Micro Euro STOXX 50 contract: September 2021 (FSXEU21)
Micro DAX symbol syntax: FDXS + expiration month code + year (two digits)
Micro Euro STOXX 50 symbol syntax: FSXE + expiration month code + year (two digits)