BROWSE

S&P 500 Mini

S&P 500 Mini

What is the 'S&P 500 Mini'

The S&P 500 mini is a derivative contract representing a designated fraction of the trading value of a standard S&P futures or options contract. Designed to expand the group of investors that could afford them, the S&P 500 Minis trade and act much like their pricier peers: the contracts are cash settled, follow the same expiration schedule and trade on the same stock exchanges.

Explaining 'S&P 500 Mini'

S&P 500 Mini futures require margin on the part of the investor, while Mini options contracts are priced at 1/10 the value of the underlying S&P 500 index ($100 factor is equivalent to standard options contracts). The Mini futures contracts are marked-to-market daily, and expiration date pricing is determined by the opening price of the underlying index securities on the day of expiration.

Market demand for a product class like this developed as the S&P index grew from the 200-300 level in 1986 (when S&P 500 derivatives were first introduced) to more than 1,000 in 2007, effectively pricing individual investors out of the market as contract sizes grew to over $100,000. With the advent of the Mini, smaller investors can use the same hedging and speculation strategies available to institutional and accredited investors, and with high levels of liquidity and exchange-backed financial integrity.


Further Reading


Quantifying reflexivity in financial markets: Toward a prediction of flash crashes
journals.aps.org [PDF]
… exogenous influences with self-excited dynamics, to the E-mini S&P 500 futures contracts … impacting investors whose elaborate interactions via complex social and economic networks lead to … The arguably most important question in financial economics is indeed to what degree …

On the economic consequences of index-linked investingOn the economic consequences of index-linked investing
www.nber.org [PDF]
… exogenous influences with self-excited dynamics, to the E-mini S&P 500 futures contracts … impacting investors whose elaborate interactions via complex social and economic networks lead to … The arguably most important question in financial economics is indeed to what degree …

Post-'87 crash fears in the S&P 500 futures option marketPost-'87 crash fears in the S&P 500 futures option market
www.sciencedirect.com [PDF]
… exogenous influences with self-excited dynamics, to the E-mini S&P 500 futures contracts … impacting investors whose elaborate interactions via complex social and economic networks lead to … The arguably most important question in financial economics is indeed to what degree …

Board composition: Balancing family influence in S&P 500 firmsBoard composition: Balancing family influence in S&P 500 firms
journals.sagepub.com [PDF]
… exogenous influences with self-excited dynamics, to the E-mini S&P 500 futures contracts … impacting investors whose elaborate interactions via complex social and economic networks lead to … The arguably most important question in financial economics is indeed to what degree …

Product differentiation, search costs, and competition in the mutual fund industry: A case study of S&P 500 index fundsProduct differentiation, search costs, and competition in the mutual fund industry: A case study of S&P 500 index funds
academic.oup.com [PDF]
… exogenous influences with self-excited dynamics, to the E-mini S&P 500 futures contracts … impacting investors whose elaborate interactions via complex social and economic networks lead to … The arguably most important question in financial economics is indeed to what degree …

Price discovery in the S&P 500 index derivatives marketsPrice discovery in the S&P 500 index derivatives markets
www.sciencedirect.com [PDF]
… exogenous influences with self-excited dynamics, to the E-mini S&P 500 futures contracts … impacting investors whose elaborate interactions via complex social and economic networks lead to … The arguably most important question in financial economics is indeed to what degree …

Intraday trading invariance in the E-mini S&P 500 futures marketIntraday trading invariance in the E-mini S&P 500 futures market
papers.ssrn.com [PDF]
… exogenous influences with self-excited dynamics, to the E-mini S&P 500 futures contracts … impacting investors whose elaborate interactions via complex social and economic networks lead to … The arguably most important question in financial economics is indeed to what degree …

Price clustering in E‐mini and floor‐traded index futuresPrice clustering in E‐mini and floor‐traded index futures
onlinelibrary.wiley.com [PDF]
… exogenous influences with self-excited dynamics, to the E-mini S&P 500 futures contracts … impacting investors whose elaborate interactions via complex social and economic networks lead to … The arguably most important question in financial economics is indeed to what degree …

An agent based model of the E-Mini S&P 500 applied to Flash Crash analysisAn agent based model of the E-Mini S&P 500 applied to Flash Crash analysis
ieeexplore.ieee.org [PDF]
… exogenous influences with self-excited dynamics, to the E-mini S&P 500 futures contracts … impacting investors whose elaborate interactions via complex social and economic networks lead to … The arguably most important question in financial economics is indeed to what degree …

Price discovery across the stock index futures and the ETF markets: intra-day evidence from the S&P 500, Nasdaq-100 and DJIA indicesPrice discovery across the stock index futures and the ETF markets: intra-day evidence from the S&P 500, Nasdaq-100 and DJIA indices
www.worldscientific.com [PDF]
… exogenous influences with self-excited dynamics, to the E-mini S&P 500 futures contracts … impacting investors whose elaborate interactions via complex social and economic networks lead to … The arguably most important question in financial economics is indeed to what degree …



Q&A About S&P 500 Mini


How do you price an option on a mini future?

Options contracts are priced at 11 times their underlying index (1 factor is equivalent to standard options contracts).

How does margin work with the S&P 5 Mini?

Margin on the part of an investor is required for this product.

What determines expiration date pricing for mini futures?

The opening price of the underlying index securities on the day of expiration.

What is the S&P 5 Mini?

The S&P 5 Mini is a derivative contract representing a designated fraction of the trading value of a standard S&P futures or options contract.