2 thoughts on “I heard on the radio before the stock market opened, "stock futures trading lower" What does that mean?”

1. There is a stock index called the S&P 500.

   The Chicago Mercantile Exchange trades a futures contract that basicly makes money for the holder if the index goes up and loses when the indexgoes down. The CME starts trading before the NY Stock Exchange, so this is viewed as an indicator of how the market will perform when it opens.

2. Futures trading means, Deals of future took place at today’s date, like I say, I’ll sell you Google 100K by the end of month at 461.30, You have to give me money now, Thats futures trading, and secondly Stock Futures trading lower means, Investor is bit reluctant to buy short sell as they think market will further go down, It happens when market is in uncertainity