Spot-Quoted Futures: Key Features and Benefits

Definition
Spot-quoted futures (SQFs) are a new type of CME futures contract that trades directly at the spot price of the underlying market, such as an index or cryptocurrency.

Futures trading has always been an important part of global markets. From commodities and currencies to equity indexes and cryptocurrencies, futures give traders a way to speculate, hedge, and manage risk. But many beginners run into the same problem: traditional futures contracts can feel complicated. Tick sizes, multipliers, and pricing that doesn’t always match the “real” market level can make it difficult to understand exactly what you are trading.

That’s why the launch of spot-quoted futures (SQFs) by CME Group in mid-2025 has created so much buzz. These new contracts are designed to be more transparent, easier to understand, and accessible to a wider range of traders. By quoting contracts directly against the spot price of the underlying market, SQFs remove a lot of the confusion that often comes with traditional futures.

In this article, we’ll break down what spot-quoted futures are, how they’re priced, their key features, and why traders are paying attention. We’ll also look at the benefits, risks, and real-world examples so you can decide if SQFs might be a useful tool in your trading strategy.

Key Takeaways

• Spot-quoted futures trade at the actual spot price of the underlying asset, unlike traditional futures that build financing into the contract price.
• Financing costs are applied separately as a daily adjustment, making pricing more transparent and easier to understand.
• Contracts are smaller and more accessible, with notional values as low as $400 and margins starting near $100.
• SQFs reduce complexity for traders, offering longer-dated expirations, simpler pricing, and easier entry for beginners and small accounts.

What Are Spot-Quoted Futures?

A spot-quoted futures contract is a new type of futures product introduced by CME Group. Unlike traditional futures, which use multipliers and often trade at a price different from the current market, SQFs are quoted directly at the spot price of the underlying asset.

For example:

• If the S&P 500 index is at 5,600, the S&P 500 spot quoted futures contract will also trade near 5,600. 
• If Bitcoin is trading at $85,000 in the spot market, the Bitcoin SQF will trade near $85,000, rather than a different level with built-in premiums or discounts.

This direct link makes SQFs easier to read and understand. The price you see is the same as what you might find on a financial news site or trading app.

How Spot-Quoted Futures Are Priced

Traditional futures include an implied financing component. This is why futures prices can differ from the spot market, especially for contracts that expire in the future. With SQFs, CME separates this financing element out of the price.

Here’s how it works:

• Price Quote: SQFs trade at the spot price of the underlying market.

• Financing Adjustment: Instead of being hidden in the price, a separate daily adjustment is applied to profit and loss (PnL).

This financing adjustment is key:

• Intraday trades are not affected. If you open and close a trade the same day, you only capture price moves.

• Overnight positions are impacted. If you hold a position beyond the close, the financing adjustment is applied to reflect the cost or benefit of carrying the contract.

Example: If you buy an S&P 500 SQF at 5,600 and close the same day at 5,620, you earn 20 points ($20) with no financing applied. If you hold overnight and the financing adjustment is –$2, your PnL would be $18 instead of $20.

This structure makes SQFs more transparent. Traders know they’re always buying and selling at the spot price while financing costs are clearly outlined as separate adjustments.

Key Features of Spot-Quoted Futures

CME designed these contracts with accessibility and simplicity in mind. Some of the standout features include:

Direct Spot Link

• Contracts move dollar-for-dollar with the underlying market, no confusing multipliers.

Small Notional Sizes

• SQFs are even smaller than CME’s Micro contracts.

• Notional values range from about $400 to $6,000, depending on the market.

Markets Covered

Initial SQFs are available on six major markets:

• S&P 500 (QSPX)

• Nasdaq-100 (QNDX)

• Russell 2000 (QRTY)

• Dow Jones (QDOW)

• Bitcoin (QBTC)

• Ether (QETH)

Extended Duration

• Instead of monthly or quarterly expirations, most SQFs are listed with maturities as far out as June 2026. This reduces the need for frequent contract rollovers.

Low Margin Requirements

• Initial margins can be as little as $100, making these contracts highly accessible for smaller traders.

Spot-Quoted Futures Available Markets & Specs

At launch, CME Group introduced six spot-quoted futures contracts covering both equity indexes and cryptocurrencies. Each contract is designed with small notional sizes, straightforward pricing, and transparent tick values.

Source: CME Group

Why CME Launched Spot-Quoted Futures

CME Group introduced spot-quoted futures in 2025 to make futures trading more transparent and accessible. Traditional contracts, including the popular Micro E-minis, helped reduce barriers by offering smaller contract sizes, but many retail traders still found them difficult to follow. Multipliers, tick values, and embedded financing often made it hard to understand exactly how profits and losses were calculated.

Spot-quoted futures were designed to solve these challenges:

• Simplicity: Contracts trade directly at the spot price of the underlying market. Traders no longer need to adjust for multipliers or hidden financing costs.
• Accessibility: With notional values starting as low as $400 and margins near $100, SQFs are even smaller than Micro contracts, making them easier to trade for small accounts.
• Transparency: Financing costs are applied separately as a daily adjustment, so traders can see exactly what comes from price movement versus cost of carry.

Spot-Quoted vs. Micro E-mini Futures

The Micro E-mini contracts were a major step in making futures more approachable, but SQFs take accessibility further:

• Contract Size: A Micro E-mini S&P 500 (MES) is $5 × the index. At 5,600, that’s a $28,000 notional value. By contrast, the S&P 500 spot quoted futures contract is $1 × the index, or about $5,600 notional.
• Pricing: Micro E-minis still price in financing, which can cause the futures price to differ from the index. SQFs always trade at spot levels, keeping quotes familiar and intuitive.
• Expiration: Micro E-minis follow monthly or quarterly cycles. SQFs are listed with longer maturities, such as June 2026, reducing rollover frequency.

In short, CME launched spot-quoted futures to give traders a product that feels closer to the markets they already follow while keeping the capital requirements low. For many retail traders, they combine the best of both worlds: the accessibility of Micro contracts with the clarity and transparency of direct spot pricing.

Benefits of Spot-Quoted Futures for Traders

Spot-quoted futures offer several advantages that set them apart from traditional contracts:

• Easier to Understand: Because the price is quoted at spot levels, traders don’t have to do mental math with multipliers or adjust for contract value.

   

• Lower Learning Curve: New traders can enter futures markets without first mastering tick values, point values, and conversion formulas.

   

• Transparent Financing: The financing adjustment is applied separately, making it easier to see true PnL drivers.

   

• Smaller Contracts: Notional sizes are small enough to suit traders with limited capital.

   

• Less Rollover Hassle: Longer-dated expirations reduce the need to constantly roll contracts forward.

   

• Regulated Market Access: Unlike CFDs or offshore products, SQFs trade on CME and are fully regulated.

Spot-Quoted Futures vs. Traditional Futures

It’s helpful to compare SQFs directly against traditional futures.

This side-by-side view highlights how SQFs were designed to make futures more accessible and transparent while still retaining the benefits of leverage and regulated exchange trading.

Risks and Considerations

Like all futures, SQFs carry risks. Traders should be aware of the following:

• Leverage Risk: Small contract sizes still allow for leverage, which can magnify losses as well as gains.

• Financing Adjustment: Overnight positions will be affected by financing charges. This can benefit or hurt your PnL depending on the market.

• Liquidity: As a brand-new product, SQFs may take time to build deep liquidity compared to long-established futures contracts.

• Market Availability: Only six markets currently have SQFs. Not every asset class is included.

Who Trades Spot-Quoted Futures?

SQFs are designed to appeal to a wide range of traders:

• Retail traders who want exposure to indexes or crypto with smaller sizes.

• Crypto traders who are used to spot pricing and want to add leverage.

• Small account traders who can’t meet the capital requirements for E-minis or even Micro contracts.
• Active traders looking for simple exposure without complex rollover logistics.

Real-World Examples of Spot-Quoted Futures

Let’s look at a couple of examples:

• S&P 500 Spot-Quoted Futures (QSPX)
  If the S&P 500 is at 5,600, the contract trades near 5,600. At $1 × index, the notional value is about $5,600.

   

• Bitcoin Spot-Quoted Futures (QBTC)
  If Bitcoin is at $85,000, then one QBTC contract (0.01 BTC) has a notional value of $850. That’s far more accessible than CME’s Micro Bitcoin contract, which is 0.1 BTC.

These examples show how SQFs make trading major markets possible at much smaller sizes, without losing transparency.

How to Trade Spot-Quoted Futures

Getting started with SQFs is straightforward:

1. Open an Account: Choose a regulated broker like MetroTrade that offers access to CME futures.
2. Select a Market: Pick from the six available SQF products.
3. Place a Trade: Buy or sell based on your strategy, just like a traditional futures contract.
4. Manage Risk: Use stop-loss orders, set position sizes carefully, and understand the effect of financing adjustments.
5. Monitor Expiration: Keep track of contract maturities, although they are less frequent than traditional futures.

At MetroTrade, you can practice with a 30-day free demo account before moving to live trading.

Conclusion

Spot-quoted futures are one of the most exciting product launches in recent years. By aligning contract prices directly with spot markets, separating financing costs, and offering smaller contract sizes, CME has made futures more accessible than ever.

These contracts are ideal for traders who value transparency, simplicity, and flexibility. While they still carry the risks of leverage and overnight financing adjustments, they also open the door to new opportunities in both equity index and crypto markets.

If you’re curious about how SQFs can fit into your strategy, start with a MetroTrader demo account to practice risk-free. When you’re ready, open a live account and experience the benefits of trading spot-quoted futures.

Frequently Asked Questions

The content provided is for informational and educational purposes only and should not be considered trading, investment, tax, or legal advice. Futures trading involves substantial risk and is not suitable for every investor. Past performance is not indicative of future results. You should carefully consider whether trading is appropriate for your financial situation. Always consult with a licensed financial professional before making any trading decisions. MetroTrade is not liable for any losses or damages arising from the use of this content.