Index Futures Fair Value v6

This indicator calculates the theoretical fair value of an equity index futures contract (such as ES, NQ, YM) based on the price of its underlying cash index (SPX, NDX, etc.).

Then it compares:
• Theoretical Futures Price (Fair Value)
• Actual Futures Price
Why This Matters

Futures prices are NOT random—
They follow a mathematical formula based on:
1. Spot Index Price (S)
2. Interest Rate (R)
3. Dividend Yield (D)
4. Time to Expiry (T)

The fair value formula is:

F = S \cdot e^{(R - D) \cdot T}

This is what hedge funds, banks, and arbitrage desks use.

Your indicator brings this institutional-price model directly onto your TradingView chart.