fair value
The Theoretical value of the S&P 500 futures after deducting the cost of owning the contract versus owning the physical stocks (compound interest and lost dividends). Fair Value is used to predict the direction of trading in the broader market during the first few minutes after the opening bell. When the S&P Futures trade above fair value, it indicates an initial Bias toward a rise in stock prices. Likewise, when they trade below fair value, it indicates an initial bias toward a decline in stock prices. Fair Value is quoted on the Chicago Mercantile Exchange (CME).
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