E-mini & Index Futures

How index futures work and how traders use them.

1. What Index Futures Are — Index futures are contracts on the value of a stock index, like the S&P 500 or Nasdaq-100. Here is how they work, why they are settled in cash and how traders and investors use them.
2. E-mini and Micro Contracts — E-mini futures are large contracts worth hundreds of thousands of dollars; Micro contracts are one-tenth the size. Here is how to calculate a contract’s value, what each tick is worth and why micros changed access for individuals.
3. Futures Margin and Leverage — Futures margin is a good-faith deposit, not a loan, and it allows very high leverage. Here is how initial and maintenance margin work, how daily settlement moves cash and how fast losses can pile up.
4. Trading Hours and Rollover — Index futures trade almost 24 hours a day, five days a week, and expire every quarter. Here is the weekly schedule in Pacific time, how quarterly expiration works and how traders roll to the next contract.
5. Hedging a Portfolio with Futures — Selling index futures can protect a stock portfolio from a market decline without selling the stocks. Here is how to size a hedge using beta, what a hedge does in a real downturn and what it costs.
6. Futures Risk Management — Futures combine high leverage with near 24-hour trading, which can lead to fast, large losses. Here are the key risks, how a real 2025 swing would have hit a leveraged trader and rules for staying in the game.