Just because index futures have a fair value doesn't mean they trade at that price. Market participants use index futures for many different purposes, including hedging, adjusting asset allocation ...

2 is the base number and 4 is the index or power. \(2^4\) is a short way of writing \(2 \times 2 \times 2 \times 2\). The power or index shows how many times a number has been multiplied by itself.

Indices show how many times a number or letter has been multiplied by itself. Here is a number written in index form: 2 is the base number and 4 is the index or power. 2 4 is a short way of ...

The following analysis explores how the index works, its key components and methods of calculation. Market participants use this tool alongside other indicators to gauge market psychology.