What Are Spot-Quoted Futures and How Do They Work?

This article on the Spot Quoted Futures is the opinion of Optimus Futures.

• Spot-Quoted Futures (SQFs) are simplified futures contracts that let you trade major indices and cryptos at the actual spot price. In other words, what you see is what you get.
• They’re smaller than Micro E-minis with margin requirements starting as low as $100, making them accessible to traders with smaller account balances.
• These contracts come with long-dated expirations (like up to a year away), so you don’t have to worry about frequent rollovers.
• Compared to CFDs, they’re more transparent, more secure, exchange-traded, and available to U.S. retail traders.

What Are Spot-Quoted Futures?

Spot-Quoted Futures (or, SQFs for short) are a new type of futures contract from CME Group that allows you to trade major indices and cryptos, like the S&P 500, Nasdaq-100, and bitcoin, but with a few key differences. 

Here’s what’s cool about them: 

They trade at the actual spot price: There’s no more need to guess whether the contract is priced higher or lower than the real market. The price you see on CNBC or Yahoo Finance is going to be the same as the SQF price. 

They’re smaller than the Micro E-minis: Compared to traditional futures, SQF contracts are tiny. Not only does this make them accessible to almost all retail traders, SQF contracts can also mean less risk due to lower margins, lower costs, and more flexibility in sizing your positions. 

How Do Spot-Quoted Futures Work?

The main feature is that SQFs reflect the spot price of the asset they track. This eliminates the premium/discount confusion that you can sometimes get from traditional futures contracts.

However, there is one thing to keep in mind: a daily financing adjustment kicks in if you hold your position overnight. This is a small adjustment that reflects the difference between spot and futures pricing. It also helps keep both markets in sync.

So, what does this mean?

• If you’re just day trading, this adjustment won’t apply to you.
  
• If you hold overnight, however, you’ll see a small charge or credit based on that day’s adjustment.

Similar to how crypto perpetual futures work, the adjustment keeps prices tethered to the real market. Again, you’ll notice it only if you’re staying in the trade past the close.

How Are SQFs Different from E-mini and Micro E-mini Futures?

SQFs are quite different, so let’s break it down. Note that E-minis and Micro E-minis are already considered “smaller” futures contracts. SQFs go even further, cutting down the size and complexity of the contracts.

Here’s a quick comparison:

Features	E-mini	Micro E-mini	SQFs
Size:	Large	1/10 of E-mini	As small as 1/20 of a Micro
Price:	May trade at a premium or a discount	Same as E-mini	Matches the spot price
Expiration:	Monthly or Quarterly	Monthly or Quarterly	Long-dated (e.g., June 2026)
Margin:	High	Lower	As low as $100
Overnight Charges:	None	None	Small financing adjustment
Ideal for…	Pros and experienced traders	Active traders	Beginners and low-cap traders to pros

Thinking about SQFs in detail, these contracts give you plenty of flexibility, allowing you to hold contracts for months (given the daily financing adjustment) and scale up or down your position according to your risk tolerance and trading goals.

 In short, they give you plenty of breathing room to manage your trades with the least amount of pressure and the most amount of time.

What’s the Margin Requirement for Spot-Quoted Futures?

Here’s one of the best parts about trading SQFs: They’re light on margin.

In many cases, you can trade with as little as $100, depending on the product. Still, the margin required is a mere fraction of what you’d need for larger futures contracts. And if you’re comparing SQFs to leveraged ETFs, the costs of the contracts are cheaper.

Here’s an example of SQF margin requirements (also, note that this is an approximation, and subject to change):

• Nasdaq-100 (QNDX): $100
• S&P 500 (QSPX): $100–150
• Bitcoin (QBTC): Varies with volatility, but still low

What do these low margin requirements allow you to do? You can…

Test new strategies with minimized risk: The point of testing a new strategy is not only to determine its potential profitability in a live market, but also to find its weaknesses or errors in construction. If your strategy is profitable, you can scale up your position size. But if it’s not, your potential losses can be a mere fraction of the losses you’d incur with larger contracts. This makes SQFs an ideal asset for testing strategies.

Scale into trades gradually: If you aim to scale into a much larger position when you’re buying a dip, or buying a series of breakouts, then SQFs allow you to build your full position in a gradual, incremental manner. 

Limit your risk exposure: What if you’re trading during a volatile period when the markets are easily swayed by market news or geopolitical developments? In this case, it’s best to limit your risk exposure by going small. SQFs are the smallest you can get in the futures universe.

Trade multiple markets at once without overextending your capital: Suppose you want to trade the S&P, Nasdaq 100, and Bitcoin at the same time. This would be relatively expensive for many retail traders if Mini or Micro contracts were the only instruments they could trade. SQFs are small enough to make the trading of multiple markets realistic and manageable.

How Do SQFs Compare to CFDs (Contracts for Difference)?

That’s a good question as CFDs are highly popular overseas, but not available to U.S. retail traders. That said, it’s still helpful to know how they compare.

SQFs vs. CFDs:

Feature	SQFs	CFDs
Regulated?:	Yes, by CME Group	Depends on broker
Trading Venue:	CME Globex (exchange-traded)	Broker platform (OTC)
Counterparty Risk:	Cleared through central clearing	Broker is your counterparty
Transparency:	Full price visibility	Varies by broker
Available in U.S.?:	Yes	No (for retail)

Here’s the skinny:

• SQFs are regulated instruments cleared through CME and overseen by the CFTC. CFD regulation varies by jurisdiction and broker.
• Counterparty risk is critical—you want to trade through a well-capitalized exchange, not a broker who may be exposed to liquidity issues.
• SQF pricing is transparent, just like futures. With CFDs, the broker or liquidity provider often quotes the price, all of which can vary from broker to broker.

Bottom line? SQFs give you exchange-level safety and transparency, while CFDs operate in a more opaque environment. If you’re in the U.S. and looking for a futures-style instrument that’s accessible and secure, SQFs are a solid pick.

Learn More: CFDs vs Futures: Which Offers Less Risk for Traders?

Are Spot-Quoted Futures the Closest Thing to Perpetual Futures in Traditional Markets?

The answer is Yes…pretty much.

SQFs are like perpetual futures contracts, most of which are crypto derivatives.  Like perpetual futures, instead of rolling them over, you just pay or receive a funding fee that keeps the price aligned with the real market.

However, SQFs aren’t exactly perpetual—but they’re close:

• They trade at the real-time spot price
  
• They include a daily financing adjustment (just like perpetuals)
  
• They offer long-dated expirations (so you don’t need to roll every month)
  
• They trade nearly 24/5
  

So, if you’re coming from crypto or you like the idea of “set-it-and-forget-it” trades, SQFs give you most of that experience—with a little more regulation and structure.

Who Should Trade Spot-Quoted Futures?

Although SQFs are ideal for beginners, experienced or professional traders who want to scale down, test strategies, or just trade more flexibly can also use them.

SQFs might be a good fit if you’re:

• New to futures and want to start small
  
• Already trading Micro E-minis and want to scale even smaller
  
• A stock or ETF trader who wants more leverage
  
• A crypto trader looking for a regulated alternative to perpetuals
  
• Testing long-term ideas and want to avoid constant contract rolls
  

They’re also a solid choice if you’ve got a smaller account and don’t want to tie up too much of your capital in a single position.

What Are the Pros and Cons of Spot-Quoted Futures?

Just like any financial instruments, there are advantages and disadvantages to any asset. Here are the main ones:

The Upside:

• Real-time pricing: No more dealing with futures premiums or discounts
  
• Low barrier to entry: Start trading with as little as $100
  
• Longer expirations: Hold trades for months without rolling
  
• Transparent and regulated: Traded on CME with no pattern day trading rules
  
• Flexible sizing: Great for scaling in and out
  

The Trade-Offs:

• Not truly perpetual: There’s still an expiration date (though it’s far off)
  
• Overnight financing charges: Small but worth keeping an eye on
  
• Limited products (for now): Only a few benchmarks and cryptos available
  

Final Thoughts: Are SQFs the Future of Retail Futures?

Spot-Quoted Futures are likely to be a major game changer in the industry, especially for those who’ve wanted to trade index or crypto markets without the hassle.

It’s as if SQFs took the best parts of traditional futures—leverage, flexibility, and market access—while ditching the more  confusing aspects like premiums, rollovers, and big capital requirements.

Whether you’re new to futures or just want a more flexible way to trade the S&P, Nasdaq, or bitcoin, SQFs give you plenty of tools without the friction. As CME Group expands this lineup, SQFs are likely to become the go-to product for the next generation of futures traders.

Ready to Trade Spot-Quoted Futures?

✅ Start with as little as $500
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