Concept Behind S&P 500 and Its Emini

[maciek 10]

I am confused about S&P 500 and ES (S&P 500 Emini). The ES is open almost all day while the S&P500 is open during regular hours. I am confused where the value and price is derived. Is the price of ES derived from S&P500? If so, why is S&P 500 Emini open 24 hours and not the regular hours?

[MightyMouse 12]

I am confused about S&P 500 and ES (S&P 500 Emini). The ES is open almost all day while the S&P500 is open during regular hours. I am confused where the value and price is derived. Is the price of ES derived from S&P500? If so, why is S&P 500 Emini open 24 hours and not the regular hours?

 

Both are derivatives of the S&P 500 index which is an index of the 500 highest capitalized stocks. You can easily locate sources which will help you understand how stocks are added and taken away from the index. The price of the index moves when the underlying stocks are bought and sold. Sometimes the index leads the futures and sometimes the futures lead the index.

 

Traders buy and sell the futures contracts anticipating moves in the S&P.