1. What is S&P 500 Futures?

S&P 500 futures are financial contracts that obligate the buyer to purchase or the seller to sell the S&P 500 index at a predetermined future date and price. Each contract represents $50 times the value of the S&P 500 index.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• \( Index \) — Current S&P 500 index value in points
• \( \$50 \) — Dollar multiplier per index point

Explanation: This calculation gives the notional value of one S&P 500 futures contract.

3. Importance of Futures Valuation

Details: Understanding the contract value is essential for risk management, margin requirements, and position sizing in futures trading.

4. Using the Calculator

Tips: Enter the current S&P 500 index value in points. The calculator will compute the contract value in USD.

5. Frequently Asked Questions (FAQ)

Q1: What's the contract size for S&P 500 futures?
A: The standard contract size is $50 per index point. E-mini contracts are $50 × index.

Q2: What exchanges trade S&P 500 futures?
A: Primarily traded on CME Group's Chicago Mercantile Exchange (CME).

Q3: What affects S&P 500 futures prices?
A: The underlying index value, interest rates, dividends, and time to expiration.

Q4: What's the difference between futures and the index?
A: Futures are derivative contracts that track the index but trade at slight premiums/discounts.

Q5: What are typical margin requirements?
A: Initial margins vary but are typically 5-15% of contract value, set by exchanges and brokers.