Complete攻略 of the 2025 US Futures Index: Take Your Portfolio to the Next Level

What exactly is a futures index that everyone is paying attention to?

An indicator that consolidates the price movements of various assets into one, that’s the futures index. For example, the Nasdaq 100 combines the market capitalization and liquidity of the top 100 companies listed on Nasdaq into a single number.

The major futures indices in the US are mainly three:

S&P 500 Futures Index - Calculated as a weighted average of the top 500 companies on the New York Stock Exchange and Nasdaq. Movements in this index represent the heartbeat of the entire US stock market. It is one of the most important measures for reading volatility in the global financial markets.

Nasdaq 100 Futures Index - Composed of the top 100 companies listed only on Nasdaq. Unlike the S&P 500, it excludes companies from the New York Stock Exchange. With a high proportion of tech stocks, it attracts the interest of growth investors.

Dow Jones Futures Index - Consists of only 30 blue-chip companies on the New York Stock Exchange. Unlike other indices, it uses a simple average and best reflects the overall health of the US economy.

Why are futures indices so popular among traders?

Read the market movements first

Futures are products that trade future prices now. Therefore, they move ahead of the spot market. Analyzing the futures index allows you to predict how the spot market will behave in the future. This is the biggest appeal of futures indices. If your predictions are accurate, you can profit a step ahead of spot investors.

The ultimate tool for portfolio hedging

Think stocks are going to fall? You can sell futures indices. This is called hedging. Trading the index is much more stable than betting on individual stocks because even if some stocks fall, the index can still rise. During a tech sector rally, the stock prices of specific companies might decline, but index trading protects you from such individual risks.

Aim for big profits with less capital: Leverage

Leverage involves trading with borrowed money. A 1:10 leverage means you can trade 10 million won worth of assets with only 1 million won. The remaining 9 million won can be used for other opportunities.

To open a 10 million won position in the S&P 500, normally, you need 10 million won. But with leverage, just 1 million won is enough. Even products with daily volatility of 0.1% can aim for 1% returns with 1:10 leverage. That’s why high leverage is often used in fractional-price products.

⚠️ Caution: Both profits and losses are magnified 10 times. Beginners should start with low leverage.

24/7 Liquidity

Futures indices have fixed expiration dates and are traded frequently. High liquidity allows you to open and close positions at will. Orders are filled quickly, reducing slippage(the difference between order price and execution price).

How to actually trade futures indices

Step 1: Choose a trading platform

Trading through domestic securities firms offers all services in Korean and access to hedged products. If you search for “futures” in the product search bar, you’ll find US futures index-based funds and ETFs. Hedged products are usually marked as “(H)”.

Global trading platforms offer greater freedom. You can trade anytime, anywhere via web and mobile apps, and use CFDs and leverage to craft more sophisticated trading strategies.

Step 2: Decide on a trading strategy

Trend-following strategy - Buy when the index rises, sell when it falls. The most straightforward approach. Just follow the trend rather than complex analysis.

Counter-trend strategy - Expect the trend to reverse and trade accordingly. It can yield large profits but also involves high risk. Precise timing of peaks and bottoms is essential. Suitable for experienced traders only.

Arbitrage strategy - Exploit price differences between futures and spot indices. For example, if futures are more expensive than the spot, sell futures and buy the spot. High volatility can lead to losses, so careful analysis is necessary.

Step 3: Choose analysis techniques

Technical analysis - Reads trends through charts and patterns. Uses indicators like moving averages, Bollinger Bands, MACD. Clear and fast but may overlook fundamental factors.

Fundamental analysis - Analyzes company financials, economic indicators(interest rates, inflation), economic growth rates. Helps understand the fundamental reasons behind price movements but is complex and markets often move contrary to fundamentals.

The smartest approach is to combine both. Adjust the emphasis based on the situation and the traded product.

Step 4: Understand cost structure

Every trade incurs fees. These vary by securities firm, so check in advance. Additional fees may apply when using CFDs or leverage.

Since US futures are traded in dollars, exchange rate fluctuations should also be considered. You can aim for currency gains or hedge currency risk.

Trading profits are subject to taxes. Domestic securities firms and global platforms have different tax rates, so verify before trading.

CFD vs Futures Contracts: Which is right for you?

Advantages of CFDs - High leverage, 24/7 trading, no expiration

Disadvantages of CFDs - Relatively high fees, lower liquidity, slippage risk

Advantages of Futures Contracts - High liquidity, optimized for hedging, relatively low fees

Disadvantages of Futures Contracts - Fixed trading hours, expiration date, capital gains tax

CFDs do not involve owning the actual asset; you only trade the price difference. For example, buying at 1,000 won and selling at 1,100 won yields a 100-won profit. They can be traded 24/7 with no expiration, but fees are higher than futures, and lower liquidity can cause order delays.

Futures contracts are traded only at specific times and have expiration dates, but they offer high liquidity and quick order execution. They are more suitable for portfolio hedging.

Which futures index should you choose?

Long-term investment - Dow Jones Futures Index. Comprises 30 stable blue-chip companies.

Growth-oriented - Nasdaq 100 Futures Index. High proportion of tech stocks, offering higher returns in bullish markets but larger declines in downturns.

Balanced portfolio - S&P 500 Futures Index. Represents the overall US economy.

If the tech sector looks weak, avoid Nasdaq 100. Always read the current market situation before making a decision.

US futures index outlook for 2025–2026

The US is the world’s leading economy and a financial powerhouse. Major futures indices like S&P 500, Nasdaq, and Dow Jones have been rising long-term and are expected to continue upward.

However, precise short-term forecasts are difficult due to numerous variables such as Federal Reserve interest rate policies, economic indicators, political situations, and international affairs.

Stay updated with economic news and review brokerage analysis reports. Regularly monitoring fundamental factors can lead to profits.

Conclusion

Futures indices are not just investment tools but a compass for reading the market. Understand the basics, develop strategies suited to your investment style, and keep analyzing continuously.

If you’re nervous to start, begin with low leverage and small positions. As experience grows, you’ll develop your own trading style. The first step into futures index trading can be the beginning of your profit journey.