On financial platforms or stock trading software homepages, the most common things you see are the three major US stock index futures continuously rising or news about US stock index futures falling. So, what are these US stock index futures? Below is an introduction.

What are the three major US stock index futures?

The first is the Nasdaq Index Futures. The second is the Dow Jones Index Futures, and the third is the S&P 500 Index Futures. Among them, the first, Nasdaq Index Futures, is based on the Nasdaq Index. The second is the Dow Jones Index Futures, where the most basic futures contract is the Dow Jones Industrial Average. The third is the S&P 500 Index Futures, which includes nearly 400 industrial stocks among its components. To some extent, the trends of the three major US stock indices can influence the trends of other futures. That is, when these three major indices rise, other stock index futures may also rise, and when they fall, others may fall as well—though this relationship is not absolute.

What are the characteristics of US stock index futures?

1. US stock index futures are a type of bilateral agreement, a contract traded under specific conditions at a future time. The method of judgment involves predicting the trend of the stock index's changes.

2. Trading US stock index futures requires signing a relatively high-value contract, and it does not require full payment—only a partial margin needs to be paid.

3. The price of US stock index futures is highly correlated with changes in other asset indices. The price changes of stock index futures are tied to the underlying asset, which is the stock index itself, making the stock index the primary factor.

4. In specific market conditions, stock index futures carry operational risks, cash risks, etc. The role of leverage also amplifies the risks associated with stocks.

5. Convenient short selling. Short selling is a primary condition, which involves borrowing a certain amount of stock from others. However, US stock index futures impose strict conditions on short selling, making it inconvenient for all investors to complete short selling transactions in the financial market. Investors often rely on brokers to facilitate this, but this method incurs certain fees. Thus, not everyone can engage in short selling, whereas trading index futures does not have this issue.