•The S&P 500, for example, is an index comprised of 500 stocks chosen for market size, liquidity and industry grouping. •These contracts are designed to closely track the price movements of the S&P 500 Index. •S&P 500 futures are legally binding agreements to buy or sell the cash value of the S&P 500 Index at a specific future date •S&P 500 contracts are cash-settled; there is no delivery of the individual stocks •S&P 500 Index futures contracts expire each quarter, always on the third Friday of March, June, September and December •Contracts with several expirations are traded simultaneously
Subscribe to view the full document.
S&P 500 futures •The CME offers two sizes of the S&P 500 contract: 1.the standard "big" futures contract 2.the S&P 500 "e-mini" contract •The "e" stands for "electronic," as this contract is exclusively traded on the CME's electronic, GLOBEX platform •the "mini" represents the fact that this contract is one-fifth the size of the big contract. •The e-mini is more affordable to retail traders, with lower day-trading margin requirements. •This contract is traded electronically (23 hours per day), resulting in high volume action •More than 1 mil contracts trade daily