Explaining Futures, Cash Markets & Indices & Broker Prices! ☝

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This is a video explaining futures, cash markets and indices and broker prices. What is the difference between cash and futures markets? What is the relationship between cash market and futures market? I understand this can be tricky to grasp.
We have two official prices; we have the cash price and we have the futures price. Since there are no physical assets to deal, most stock indices trading takes place via derivatives called futures

A spread betting or CFD broker will quote you before.

Dax Current prices (biggest 30 listed companies in Germany)

Cash: 11648 - 49
Futures 11664 - 66 June 2019 expiry,

If we've buying thru an exchange, the only way to get the cash price is by buying 30 stocks in the correct amount. The cash price published by the exchange is just a statistic and its not tradeable.
What we can trade however are futures contracts. Futures contracts are based on the underlying cash price but they have added formulas including interest rates, time to expiry and they are basically buying something for a future point in time.
A CFD provider or spread betting company will allow you to trade the futures contract and that will mirror the contract in the underlying exchange. The interesting thing comes when we're trading the cash price.

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[karllaeufer]

Thank you, I was waiting for this video to clear things up a bit:)

[mirellasquarcia]

Thanks. Is it true that for example the future S&P 500 index provides a unique real market price whereas CFD products do not have a unique real value?

[azhar]

Quick question please: For Monthly index options profit/loss: option strikes are compared with expiration day "open price" or with "spot price" (not day open). Thanks.

[hii.m.]

Great info. What about about the index ETF, is it delayed? And does the ETF follow the cash index on the exchange?