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.
A contract on an index
An index future is an agreement to exchange the value of a stock index at a future date. Nobody delivers 500 stocks; instead, the contract is settled in cash based on the index level. Each contract has a multiplier that turns index moves into dollars.
Why they matter
- They trade nearly around the clock, so they show how markets react to overnight news.
- They let investors hedge a whole portfolio in one trade.
- They offer high leverage with relatively low trading costs.
- Morning TV “futures are up” reports refer to these contracts.
The major U.S. index futures
| Index | E-mini multiplier | Micro multiplier |
|---|---|---|
| S&P 500 | $50 per index point | $5 per index point |
| Nasdaq-100 | $20 per index point | $2 per index point |
| Dow Jones Industrial Average | $5 per index point | $0.50 per index point |
| Russell 2000 | $50 per index point | $5 per index point |
Standard contract multipliers on the main U.S. futures exchange.
Futures and ETFs track the same thing
S&P 500 futures and SPY follow the same index, so their percentage moves are nearly identical during market hours, apart from small differences caused by interest rates and dividends. In our price data, SPY closed at $761.69 on Sept. 18, 2026, about one-tenth of the S&P 500’s level.
A real chart: SPY daily bars, Jan. to Dec. 2025. S&P 500 futures moved nearly in step. Past performance does not predict future results.
Key takeaways
- Index futures are cash-settled contracts on an index.
- A multiplier converts index moves into dollars.
- They trade nearly around the clock.
- They move almost in step with index ETFs.