What I buy or sell when I trade with ES

J

Jfranco_2003

Hello, I have a question.

What I'm buying when I trade in the ES market? For example. When I trade in the CL market (Light Crude) I am buying or selling 1000 light crude barrels, but when I trade with the ES, I'm buying or selling the 500 stocks? Or what? If someone can explain me this I will be so happy.

Thanks.
 
Jfranco_2003 said:
Hello, I have a question.

What I'm buying when I trade in the ES market? For example. When I trade in the CL market (Light Crude) I am buying or selling 1000 light crude barrels, but when I trade with the ES, I'm buying or selling the 500 stocks? Or what? If someone can explain me this I will be so happy.

Thanks.
More...

Google “CME S&P 500 emini contract specifications”
 
Robert Morse said:
Yes, ES is based on the SP 500. It is 50X the SPX index so $50/point. It is cash settled so you get nothing at settlement except a realized P/L.
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Oh ok, but what I buy when I buy the SPX, one share of each stock or it's only a speculative market?
 
Jfranco_2003 said:
Oh ok, but what I buy when I buy the SPX, one share of each stock or it's only a speculative market?
More...
SPX is an index, not a stock. The basket mirrors the 500 stocks. You are betting on the change in price, not owning anything. The SPY is an ETF where you can buy something and hold it. The ETF is backed by baskets of the underlying stocks.
 
Robert Morse said:
SPX is an index, not a stock. The basket mirrors the 500 stocks. You are betting on the change in price, not owning anything. The SPY is an ETF where you can buy something and hold it. The ETF is backed by baskets of the underlying stocks.
More...

Thanks you, this is that I needed to know.
Saludos:D
 
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