Hi all!
Tha question here is: what is moving price at futures, let's say ES or YM. Who can explain the core?
It doesn't look the price reflects supply/demand ratio, who is pulling the string? :?:
Hi all!
Tha question here is: what is moving price at futures, let's say ES or YM. Who can explain the core?
It doesn't look the price reflects supply/demand ratio, who is pulling the string? :?:
Hi all!
Tha question here is: what is moving price at futures, let's say ES or YM. Who can explain the core?
It doesn't look the price reflects supply/demand ratio, who is pulling the string? :?:
:idea:
I don't think any of us really understand what you're asking.
they are both kept in sync with each other through arbitrage. i.e buying one and selling the other when the spread widens.
the futures market is not linked to the main index. the futures market leads the cash. they are both kept in sync with each other through arbitrage. i.e buying one and selling the other when the spread widens.
well, say if the ES is trading higher than the Cash index what the arbitragers would do is short the ES and buy the cash in the form of a basket of stocks or perhaps the SPY (im not an arbitrageur) which then causes the spread or the difference between the two to converge.
the futures market leads the cash