Mini S&P 500 futures are legally binding agreements to buy or sell the cash value of the S&P 500 Index at a specific future date. The contracts are valued at $50 x the futures price. For example, if the Mini S&P 500 futures price is at 1400.00 the value of the contract is $70,000 ($50 x 1400.00).

The minimum price movement of the futures or options contracts is called a "tick." The tick value is .25 index points, or $12.50 per contract. This means that if the futures contract moves the minimum price increment (one tick), say, from 1300.00 to 1300.25, a long (buying) position would be credited $12.50; a short (selling) position would be debited $12.50. All futures positions (and all short option positions) require posting of a performance bond (or margin). Positions are marked-to-the-market daily. Additional deposits into the margin account may be required beyond the initial amount if your position moves against you.
 
Mini S&P 500 contracts are cash settled, just like the Standard S&P 500; there is no delivery of the individual stocks. Even better, Mini S&P 500 daily settlements and quarterly expirations will use the exact same price as the S&P 500. The same daily settlement prices allow Mini contracts to benefit from the liquidity of the S&P 500 futures.