The Traderszone Network

Published in TZ Latest News 6 April, 2017 by The TZ Newswire Staff

How does the S&P futures contract follow the top 500 companies?

If the S&P 500 is a weighted average of the top 500 companies, what happens if large hedge funds or investors buy or sell this particular contract in big volume? They will definitely move its price, so then how can the contract be said to follow these 500 companies?