Equity Futures

S&P 500 Futures

S&P 500 Futures

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S&P Futures Market

As part of the financial futures complex of products within commodities futures, the S&P 500 futures index is one of the most widely traded index commodities futures contracts in the U.S. Stock portfolio managers who want to hedge risk over a certain period of time often use S&P 500 futures to do so. By shorting these contracts, stock portfolio managers can protect themselves from the downside price risk of the broader market.

S&P 500 Market History

The Chicago Mercantile Exchange (CME) introduced trading in S&P 500 futures in 1982. The contracts are based on the Standard and Poor’s 500 Index (S&P 500), which contains many of the largest companies in the world. Therefore, movement in the direction of the S&P futures is one of the best indicators of overall short-term market direction. The S&P E-mini futures contract was introduced by the CME 1997, after the value of the existing S&P contract (then valued at 500 times the index, or over $500,000) became too large for many small traders.

S&P 500 Facts

S&P 500 futures contracts give buyers the right to a basket of the stocks in the S&P 500 on expiration date. Now priced at 250 times the index, they’re used mostly by institutional investors with the exception of E-mini futures contracts, which have a lower value and are used by retail investors.

S&P Futures Trading

The main reason that S&P futures are so popular for detecting strength is because the contract trades 24 hours a day on financial exchanges around the world. It allows traders and brokers to gauge the futures levels within commodities futures markets before the actual stock markets open.

  • S&P 500 Futures are traded on the CME Globex platform.
  • S&P 500 Index futures contracts expire each quarter, always on the third Friday of March, June, September and December.
  • The CME offers three sizes of the S&P 500 contract: the standard “big” futures contract, the S&P 500 “E-mini” contract and the Micro E-mini contract.
  • The standard contract is what the institutions and commercials trade.
  • At one-fifth the size, the S&P E-mini futures contract is more affordable to retail traders, with lower day-trading margin requirements.
  • Delivery months for S&P 500 futures occur in all months.

S&P 500 Futures E-mini Contract Specifications

Contract Symbol Contract Unit Price Quotation
ES $50 per contract dollars per contract
Trading Exchange Trading Hours Tick Value
CME GLOBEX 17:00 – 16:00 0.25 index points = $12.50

Fundamental reports guide for S&P 500 futures market

Indices

Stocks Recover Slightly from Wednesday’s Break Lower

Tyler Herrmann
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Vigilance Required in Navigating S&P Correction-vs-Reversal Debate

RJO Market Insights
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Stocks Up on Tuesday Morning

Greg Perlin
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Stocks Slide to Start Week

Alexander Turro
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Volatility Returns as Stocks Search for Direction

Ian Bannon
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S-T Mo Failure Stems S&P Spasm, Defines New Bull Risk Levels

RJOF Editorial Team
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Navigating S&P Correction-vs-Reversal Debate a Matter of SCALE

RJO Market Insights
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Futures Market Insight w/John Caruso – 08/6/2019

John Caruso
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Stocks Down Across The Board Amid U.S.-China Trade War Speculation

RJO Market Insights
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Stocks Lower on Trade War Fears

Jeff Yasak