Futures Trading Hours
Futures Trading Hours
Each futures product has different trading hours as per the exchange's regulations. The primary trading hours for some of the major futures products like stock indices, currencies, interest rates, metals, energy, agricultural products, and meats on the Chicago Mercantile Exchange (CME) are as follows:
Chicago Mercantile Exchange (CME) | Trading Hours |
|---|---|
Stock Indices | Eastern Standard Time (EST): Sunday to Friday, 6:00 PM to 5:00 PM the next day. Trading halt from 4:15 PM to 4:30 PM. |
Currencies | EST: Sunday to Friday, 6:00 PM to 5:00 PM the next day. |
Interest Rates | EST: Sunday to Friday, 6:00 PM to 5:00 PM the next day. |
Metals | EST: Sunday to Friday, 6:00 PM to 5:00 PM the next day. |
Energy | EST: Sunday to Friday, 6:00 PM to 5:00 PM the next day. |
Agricultural Products | EST: Sunday to Friday, 8:00 PM to 8:45 AM the next day and Monday to Friday, 9:30 AM to 2:20 PM. |
Energy | EST: Monday to Friday, 9:30 AM to 2:05 PM. |
Source: Mitrade
Investors can also visit the official CME website for detailed trading hours: CME Futures
Last Trading Day and First Notice Day
Last Trading Day:
- The final day a futures contract can be traded. Contracts held until this day will be settled. Physical delivery is not provided, and to avoid settlement risk, contracts held until the last trading day might be forcibly closed three trading days before expiration.
- Cash-settled commodities can be held until after the close of the last trading day, with the exchange settling contracts at the settlement price, converting positions into cash.
First Notice Day:
- After this day, the seller of a futures contract can notify the buyer of their intent to deliver the underlying asset.
- Most brokers don't offer physical delivery, so to avoid delivery risk, contracts held until the first notice day might be forcibly closed three trading days before expiration.
U.S. Futures Trading Specifications
U.S. Futures Trading Specifications
Minimum Trading Unit | 1 standard contract/lot |
Price Fluctuation Limit | No limit |
Trading Method: | Margin trading (less than 50%) |
Settlement Mechanism: | Cash Settlement, Physical Delivery |
Source: Mitrade
Minimum Trading Unit: Futures are traded in terms of "contracts", with the smallest trading unit being one standard contract (often referred to as one lot). Different futures products have different contract specifications.
Price Fluctuation Limit: There's no price fluctuation limit in U.S. futures. Investors need to understand and manage their investment risks.
Trading Method: Futures contracts are traded on margin. Traders only need to deposit a certain percentage (typically less than 50%) of the contract value as initial margin. Exchanges settle contracts daily, and if a trader's margin falls below the required amount, they'll need to deposit additional funds. Brokers might require higher margins for overnight positions.
Settlement Mechanism: When a futures contract reaches its delivery date, it's settled as per the exchange's rules. There are two main types of settlement: cash settlement and physical delivery.
- Cash Settlement: Profits and losses of open contracts are calculated based on the settlement price, and the contracts are settled in cash.
- Physical Delivery: The buyer and seller of the futures contract settle by transferring the underlying asset.
U.S. Futures Trading Markets
U.S. Futures Trading Markets
Futures trading in the U.S. primarily takes place on exchanges under the Chicago Mercantile Exchange Group (CME Group). The main exchanges are:
- Chicago Mercantile Exchange (CME)
- New York Mercantile Exchange (NYMEX)
- Chicago Board Options Exchange (CBOE)
- New York Commodity Exchange (COMEX)
These four exchanges are located in Chicago and New York, offering contracts across various categories like energy, precious metals, base metals, agricultural products, currencies, interest rates, and more, with hundreds of futures and options contracts available for trading.
