Core Insights - The financing adjustment in Spot-Quoted futures has a minimal impact on a trader's profit and loss (PnL), particularly for positions held overnight [3][4][13] - Spot-Quoted futures (SQFs) provide retail traders with access to key benchmark futures products at a low notional value, allowing for capital efficiencies and trading at the spot price [5][13] - The average daily financing amount across six listed SQFs is approximately $0.45, which is relatively small compared to the daily index moves [4][12] Financing Adjustment Impact - The daily financing adjustment represents less than 2% of the total PnL move across all six Spot-Quoted futures products at CME Group [9][10] - When comparing the financing adjustment to the high-low range for a trading day, it accounts for about 1% of the daily move within an index [11][12] - The financing adjustment is typically between 0.01% to 0.04% of the notional position taken, indicating its minimal nature [14] Trading Characteristics - SQFs are designed to allow trading with low upfront capital commitment and do not require full funding of the position, which enhances accessibility for retail traders [3][5][13] - The trading activity in SQFs has significantly increased, achieving a record average daily volume (ADV) of 120,000 contracts in Q4 2025 [3] - The financing component is only incurred for positions held overnight, making it irrelevant for intra-day traders [1][2]