0
$\begingroup$

Why on some days is there a price gap on the S&P futures market. Meaning why is there a major difference in the closing price and opening price. Example on 2/18/2022 market closed at 4343.5 and on 2/22/2022 it opened at 4324.5 almost 20-point difference between close and open.

$\endgroup$
3
  • $\begingroup$ 2/19 and 2/20 were weekend days and 2/21 was a partial holiday (Presidents' Day) (so no trading but plenty of news happening in Eastern Europe among other places! Stocks got repriced.). $\endgroup$
    – nbbo2
    Feb 23, 2022 at 16:44
  • $\begingroup$ No that is not the answer it happens on other days when not weekend for example on 2/1/2022 market closed at 4535 and opened at 4552 the futures market is only closed for 1 hour on those days so what would cause a 17 pt jump $\endgroup$
    – Wray
    Feb 23, 2022 at 17:31
  • 2
    $\begingroup$ 0n 2022/02/01 the close of 4535.00 is the settlement price, which is measured at 4pm Eastern Time. The futures market does not truly close but keeps trading at a reduced volume until 5pm. At 5pm the price was 4549.50, a big increase likely because of news (earnings?) between 4 and 5pm. Then the market closed for 1 hour and reopened at 6pm at 4552.5 like you said. But the big change was between 4pm and 5 pm with the market still trading. The term "closing price" is misleading and really refers to the settlement price, at 4pm. $\endgroup$
    – nbbo2
    Feb 23, 2022 at 17:59

1 Answer 1

2
$\begingroup$

The mechanisms behind the determination of 'special' prices like 'close', 'open' etc are non-trivial and vary from security to security. For example, 'open' prices can be (but not always) the average from a special auction period, rather than just the mid snapped at certain time. To fully understand the origin of these prices, refer to the exchange's rulebook.

$\endgroup$

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service and acknowledge you have read our privacy policy.

Not the answer you're looking for? Browse other questions tagged or ask your own question.