How are index futures daily settlement prices calculated

Discussion in 'Index Futures' started by clearpicks, Apr 26, 2006.

  1. How do CME and CBOT calculate index futures daily settlement prices? I noticed sometimes the settlement prices are significantly higher than the prices traded near 4:15pm. Anyone knows why? How can we use such scenario to predict the next trading day trend? Thanks.


    - Clearpicks
     
  2. XT_Broker

    XT_Broker Global Futures

    Hello,

    The settlement prices on the e-mini indices are calculated based on the underlying big contract such as SP and NQ. Although you cannot really predict where the market is headed the next day based on this settlement price info alone there is a method called the Pivot Points which is offered free on our website that can assist you in determining the support & resistance for the next trading session. Please go here to sign up for free Pivot Points:

    http://www.globalfutures.com/webforms/pivots.asp

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  3. Generally, The settlement price should be the midpoint of the final closing range. On the last trading day of the month, weird stuff can happen, usually to the upside. Keep an eye on this Friday to see what I mean.