The Nikkei futures contract at the CME is a legally binding agreement to buy or sell the value of the Nikkei Stock Average at a specific future date. The contract is dollar-valued at $5.00 x the futures price. For example, if the futures price is 19000, the value of the contract is $95,000 ($5.00 x 19000). Because the Nikkei is a cash- settled contract, there is no delivery of individual stocks at final settlement. The "tick" size (or the minimum price change) is 5 index points, or $25.00 per contract. This means that if the futures contract moves the minimum price increment (one tick), say from 19000 to 19005, the underlying cash value of the contract has increased by $25.00. All futures positions (and all short options positions) require a performance bond. Positions are marked-to-market daily Additional deposits may be required beyond the initial amount if your position moves against you.)

The Nikkei contract is dollar-denominated and cash-settled, usually on the second Friday of the contract month. On the first business day following the final trading day, open contract positions are settled in cash to the special opening quotation of the Nikkei Stock Average. This quotation, rounded to the nearest 1/10 of an index point, also is used to settle the Nikkei Stock Average futures contract at the Osaka Securities Exchange.