DOW FUTURES – HOW YOU CAN PROFIT WITH DOW FUTURES MARKETS
Dow futures are an alternate way to invest in the 30 stocks of the dow. However, if you had bought all 30 stocks in the dow, you’d get all the dividends. Hence the “price” of the future is reduced to account for theseries of dividends. Until the futures contract expires.
Dow futures work on 10-1 leverage, or 1,000%. If it is trading at 7,000, a single futures contract would have a market value of $70,000. For every $1 (or “point” as it is known on wall street) the dow jones industrial average fluctuates, the dow futures contract will increase or decrease $10. The result is that a trader who believed the market would rally huge could simply acquire. And make a huge amount of profit as a result of the leverage factor; if the market were to return to 14,000, for instance, from the current 8,000, each. Contract would gain $60,000 in value (6,000 point rise x 10 leverage factor = $60,000). Trading begins on the Chicago Board of Trade at 7:20 a. Eastern time), which is an hour and ten minutes before the stock market opens. That allows trading to take place before the actual stock market opens so reporters and professionals can get an idea of sentiment. Dow futures are a better option than trading individual stocks. There are other advantages of trading the dow futures Dow futures are ideally suited for short-term, leveraged trading. This includes day trading and intra-day trading. The high volume of contracts changing hands each day combined with fully electronic trade execution helps to ensure prompt and reliable order fills. However; while the liquidity and ease of trading these contracts is alluring, they can be a perilous trap for any trader lacking a well thought out, well tested and complete trading system. Additionally, a fundamental understanding of the concepts and rules of trading e-mini dow futures is necessary TREND TV All different types of traders, trading advice and systems can be found on the internet these days, ranging from stocks to options to futures to forex. Some services publish lists of hot stocks to invest in for the long-term. Some give swing trading advice for stocks, options and futures. A few services offer advice and/or systems for trading futures, including e-mini dow futures. Dow futures are easily tradable futures (described previously) based on the dow jones industrial average (djia), which allow for profits based on the point movements (either down or up) of the djia. The cme group’s root symbol for the $5 e-mini dow contracts is. Each contract period has a length of 3 months, so there are four expirations per year – march, june, september and december. The expiration months have symbols, which come immediately after the root symbol ym. Immediately following that is the year symbol. Typically the year is represented as a two digit number such as 08. However, different brokerages and charting services may have slight variations on this system of symbols. The complete symbol for the $5 mini dow is the combination of ym + month + year. Dow futures are an alternate way to invest in the 30 stocks of the dow. However, if you had bought all 30 stocks in the dow, you’d get all the dividends. Hence the “price” of the future is reduced to account for the series of dividends. Until the futures contract expires.