Q:

What are S&P 500 futures?

A:

Quick Answer

S&P 500 futures are contracts to buy or sell stocks in the S&P 500 index for a specific price. They are paid and delivered at some specified date in the future.

Continue Reading

Full Answer

The two kinds of futures contracts are financial and commodities contracts. Financial contracts include cash or other financial instruments. S&P 500 futures contracts are an example of financial futures contracts. Commodities contracts include physical products, such as corn, wheat, gold and oil. Futures are used as a hedge against price movements pending delivery of the asset. Although futures contracts call for the delivery of an asset at a specified time, most futures contracts are closed out prior to the delivery date.

Learn more about Investing

Related Questions

Explore