Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
Does S&p500 index (SPX) take account of pre-market and afterhours trading?
Maybe a RTFM question...
Does S&p500 index (SPX) take account of pre-market and afterhours trading?
Shouldn't it change value during extended hours trading too?
thank you very much
Can you help answer these questions from other members on NexusFi?
SPX is an index, not a product that you can trade...like SPY (an ETF) or /ES (a futures contract) The future and now the ETF do trade what is called ETH meaning electronic trading hours (virtually 24 hours)
You might familiarize yourself with the concept of Fair Value to better understand the settlement process between cash markets and derivative products. The Index SPX and the futures will come in to line with each other shortly after the RTH (regular trading hours) open.
Thank you for your answer, I appreciated it.
I try to be more specific, I wasn't able to explain it very well. The index SPX (that is not tradable) is calculated considering 500 stocks which are traded between 9:30 and 16:00 ET. So the index moves during RTH. But I know that stocks (e.g. AAPL) are traded also 4:00am-9:30am in premarket and 16:00-20:00 afterhours. Then I expect index to change 4:00-20:00 ET.
You have that right, for the most part. Theoretical pricing does change as the individual stocks and world markets do. Many companies trade in the US on ETH now, and I would expect that list to get broader over time.
So the value of the index does change, but it is not reflected as pricing for the index is static after the close until the next open. That theoretical price change is reflected in the "Fair Value" number...the one that financial media reports prior to US RTH.
After our Thanksgiving holiday I will be able to type real time about that if it helps you.
Now it's clear! Thank you very much.
I have another question, if you know about it.
Regarding fair value I read the CME link that you posted and others resources: I noticed that even though the formula is
F = S [1+(i-d)t/360], every site has a different number. HL CAMP, CNBC, INDEXARB report a different fair value (this is a link with an historical comparison between CNBC'S and HLcamp https://www.allstocks.com/html/fair_value.html). Is this due to different interest rates and dividend rates used for calculating it? Or is there another reason?
Thank you again.
