What I buy or sell when I trade with ES

Discussion in 'Index Futures' started by Jfranco_2003, Jul 15, 2019.

  1. Hello, I have a question.

    What I'm buying when I trade in the ES market? For example. When I trade in the CL market (Light Crude) I am buying or selling 1000 light crude barrels, but when I trade with the ES, I'm buying or selling the 500 stocks? Or what? If someone can explain me this I will be so happy.

    Thanks.
     
  2. Robert Morse

    Robert Morse Sponsor

    Yes, ES is based on the SP 500. It is 50X the SPX index so $50/point. It is cash settled so you get nothing at settlement except a realized P/L.
     
    murray t turtle and CaseyB like this.
  3. bone

    bone

    Google “CME S&P 500 emini contract specifications”
     
  4. Oh ok, but what I buy when I buy the SPX, one share of each stock or it's only a speculative market?
     
  5. I did it a lot of times, I made this thread because in Google I didn't find the answer.
     
  6. Alexpung

    Alexpung

    Jfranco_2003 likes this.
  7. Robert Morse

    Robert Morse Sponsor

    SPX is an index, not a stock. The basket mirrors the 500 stocks. You are betting on the change in price, not owning anything. The SPY is an ETF where you can buy something and hold it. The ETF is backed by baskets of the underlying stocks.
     
    murray t turtle and CaseyB like this.
  8. Thanks you, this is that I needed to know.
    Saludos:D
     
    #10     Jul 16, 2019