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what do stock market index future bid/ask quotes mean?
user
well, futures don't have a "strike" like an option - the price represents how much you're obligated to buy/sell the index for at a specified date in the future.  you are correct that there's no cost to enter a contract (though there may be broker fees and margin payments).  any difference between the contract price and the price of the index at settlement is what is exchanged at settlement.   it's analogous to the bid/ask on a stock - the bid price represents the price at which someone is willing to "buy" a futures contract (meaning enter into a long position) and the ask is how much someone is willing to "sell" a contract. so if you want to take a long position on s&p500 mini futures you'd have to enter in at the "ask" price.  if the index is above your contract price on the future expiry date you'll make a profit; if it is below the contract price you'll take a loss.
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