S&P 400 Options and Futures

S&P Mid Cap 400 index futures trading contracts are traded through an auction-like process, with all bids and offers on each contract made public. Through this, a prevailing market price is reached for each contract, based primarily on the laws of supply and demand. This forum is a useful - and essential - element in a free market economy. You might be surprised to know that the futures markets are rarely used to actually buy or sell the physical commodity or financial instrument being traded; they're used for price estimation, risk management, and for some people, investment and profit.

The S&P 400 index is an important benchmark for many fund managers who invest in this segment. This index contains solid firms with good track records that are simply not large enough to be included in the much larger S&P 500 index.

S&P Mid Cap 400 Index Options Contracts & Futures Trading Contracts

S&P Mid Cap 400 Index Options Contracts

Options are contracts in which the terms of the contract are standardized and give the buyer the right, but not the obligation, to buy or sell a particular asset (e.g., the underlying stock) at a fixed price (the strike price) for a specific period of time (until expiration). To the buyer, an equity call option normally represents the right to buy 100 shares of underlying stock, whereas an equity put option normally represents the right to sell 100 shares of underlying stock. The seller of an option is obligated to perform according to the terms of the options contract-selling the stock at the contracted price (the strike price) for a call seller, or purchasing it for a put seller-if the option is exercised by the buyer. All option contracts trade on U.S. securities exchanges are issued, guaranteed and cleared by the Options Clearing Corporation (OCC). OCC is a registered clearing corporation with the SEC and has received 'AAA' credit rating form Standard & Poor's Corporation. The 'AAA' credit rating corresponds to OCC's ability to fulfill its obligations as counter-party for options trades.

Start using our Professional Charts
and Make Money with our System!

Sign up for a Free Trial Now!
(credit card not required)