Tuesday CL 11/21/2017 : Hot Topic

$EPREM Futures Premium over Cash Index

Search Dictionary

Definition of '$EPREM Futures Premium over Cash Index'

Premium of the S&P500 E-mini Futures (front month) over $SPX. This is sourced from CME and is calculated every 6 seconds.

Some feed vendors may calculate this value more frequently and it is possible for a trader with a fast and sophisticated system to calculate this themselves.

The premium is the number of points that the future is over the cash index. i.e. the difference in points between the two. This difference exists because of a concept called the cost of carry. The cost of carry implies that it costs more to hold the same basket of stocks than it does to hold the equivalent futures contract. In order for the two instruments to remain of same value the futures contract will be more expensive than the cash index.

Do you have a trading or investing definition for our dictionary? Click the Create Definition link to add your own definition. You will earn 150 bonus reputation points for each definition that is accepted.

Is this definition wrong? Let us know by posting to the forum and we will correct it.


Emini Day Trading / Daily Notes / Forecast / Economic Events / Trading Indicators / Search / Terms and Conditions / Disclaimer / Books / Online Books / Site Map / Contact / Privacy Policy / Links / About / Day Trading Forum / Investment Calculators / Pivot Point Calculator / Market Profile Generator / Fibonacci Calculator / Mailing List / Advertise Here / Articles / Financial Terms / Brokers / Software / Holidays / Stock Split Calendar / Features / Mortgage Calculator / User Pages / Donate

Copyright © 2004-2017, MyPivots. All rights reserved.