Spx Contract Specs
If you are a trader interested in the S&P 500 futures market, it is important to understand the specifications of the contract. This knowledge can help you make informed decisions about trading the contract and avoid costly mistakes.
The S&P 500 futures contract, or SPX, is a standardized contract traded on the Chicago Mercantile Exchange (CME). It is a derivative of the S&P 500 index, which tracks the performance of 500 large-cap U.S. companies. The SPX contract allows traders to speculate on the price movements of the index without having to buy or sell the individual stocks.
Here are a few key specifications of the SPX contract:
Contract Size: The SPX contract is based on the current value of the S&P 500 index and is equal to $50 times the index value. For example, if the index is trading at 3,000, the value of one SPX contract is $150,000.
Tick Size: The tick size for SPX is 0.25 index points, which is equal to $12.50 per contract. This means that a one-point move in the index is equal to $50 per contract. For example, if the index moves from 3,000 to 3,001, the value of one SPX contract increases by $50.
Expiration: SPX futures contracts expire on the third Friday of the contract month. If the third Friday is a holiday, the contract expires on the preceding business day. After the contract expires, traders can roll their position over to the next contract month.
Trading Hours: SPX futures trade on the CME Globex electronic trading platform Sunday through Friday from 5:00 pm to 4:00 pm Eastern Time (ET) with a one-hour break from 4:00 pm to 5:00 pm ET.
Margin Requirements: The margin requirement for SPX futures is determined by the CME and is subject to change. As of August 2021, the initial margin requirement for one SPX contract is $22,500, and the maintenance margin requirement is $18,000.
Understanding the specifications of the SPX contract is essential for anyone trading this futures instrument. By knowing its contract size, tick size, expiration, trading hours, and margin requirements, traders can approach the market with confidence and make informed decisions about their trades. As always, it is advisable to consult with a financial professional before making any investment decisions.