Index Futures
Futures contracts whose underlying is a stock market index — settled in cash against the final index value at expiration.
Index futures are futures contracts where the underlying is a stock market index rather than a physical commodity or individual equity. Because you cannot physically deliver an index, all index futures are cash-settled against a final settlement price calculated from the index itself.
Major US index futures: ES (S&P 500), NQ (Nasdaq-100), YM (DJIA), RTY (Russell 2000). International examples include the Nikkei (NKD), DAX (FDAX), and FTSE (Z) futures.
Index futures trade nearly 24 hours a day and are the primary mechanism through which macro traders and institutions express views on equity markets before or after the cash session opens.
Related Terms
Cash Settlement
A settlement method where no physical asset changes hands at expiration — the contract settles to a final index or reference price in cash.
BeginnerES (E-mini S&P 500)
The world's most liquid equity index futures contract — tracks the S&P 500, $50 per point, expires quarterly.
BeginnerFair Value (Futures vs Index)
The theoretical futures price implied by the spot index, cost of carry, and expected dividends until expiration.
AdvancedNQ (E-mini Nasdaq-100)
CME E-mini futures on the Nasdaq-100 index. $20 per point, 0.25-tick. Tracks the top 100 non-financial Nasdaq companies.
BeginnerRTY (E-mini Russell 2000)
CME E-mini futures on the Russell 2000 small-cap index. $50 per point — same multiplier as ES but tracks 2,000 US small-cap stocks.
IntermediateTreasury Futures
CBOT futures on US government bonds — including 2-year, 5-year, 10-year notes and 30-year bonds — used to trade interest rate risk.
IntermediateYM (E-mini Dow)
CBOT E-mini futures on the Dow Jones Industrial Average. $5 per point, 1-point tick. The smallest-notional major US index future.
Beginner