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There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade ; therefore, you should not invest or risk money that you cannot afford to lose. View the document titled Characteristics and Risks of Standardized Options. Before trading any asset class, customers must read the relevant risk disclosure statements on our Other Information page.

Futures contracts exist for a specified length of time before expiring and then being replaced with a new contract that extends further into the future. During regular U.S. stock market trading hours, the DJIA futures contract price very closely tracks the index value. In most cases, depending on the market react to the news, the underlying index in the cash market will gap up or down and continue to move in that direction. As a result, the futures traders who placed bets on the market would have already gained significant profits on their futures traders if they were right. ICE Futures U.S. offers nearly 60 cross-currency futures contracts, including contracts on several emerging market currencies, and is home to the most widely recognized benchmark for the value of the U.S. dollar. At 1/10 the size of the benchmark WTI futures contract, Micro WTI Crude Oil futures offer active traders a more precise tool for managing crude oil exposure without sacrificing transparency.

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System access and trade placement and execution may be delayed or fail due to market volatility and volume, quote delays, system and software errors, Internet traffic, outages and other factors. Tastycrypto is provided solely by tasty Software Solutions, LLC. Tasty Software Solutions, LLC is a separate but affiliate company of tastylive, Inc.

• Additionally, the Commodity Futures Trading Commission (“CFTC”) has made available a Virtual Currency Resource Web Page designed to educate and inform the public about this topic and its risks.
• Dow Futures are financial futures which allow an investor to hedge with or speculate on the future value of various components of the Dow Jones Industrial Average market index.
• Many brokers will have different margin requirements for certain futures contracts on an intraday basis and on an overnight basis .
• The high trading volumes and the leverage available have made Mini Dow futures and Micro E-mini Dow futures popular ways to trade the overall U.S. stock market.
• The S&P 500 Index ($SPX) Thursday closed up +1.76%, the Dow Jones Industrials Index ($DOWI) closed up +1.17%, and the Nasdaq 100 Index ($IUXX) closed up +2.69%.
• In contrast, the next contract month, June 2017 has an estimated volume of just 133 with previous day’s open interest at 555.

TradeStation Securities’ SIPC coverage is available only for securities and for cash held in connection with the purchase or sale of securities, in equities and equities options accounts. Explanatory brochure available upon request or at SIPC coverage is not available for TradeStation Crypto accounts. The E-Mini Dow Futures (/YM) contract is currently trading at 33,787, up 0.16% from its opening price of 2023. Price action remains in a breakout range from the downtrend channel in 2023.

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Use micro futures and options to trade a slice of the liquid futures and options markets with the same efficiency as standard contracts with less upfront commitment. Futures, forex and options trading are not appropriate for all investors. The Dow Jones Industrial Average is an index that tracks 30 large companies trading on the New York Stock Exchange and Nasdaq.

Small cap stocks are often ignored by income investors, but these 3 small cap stocks have strong dividend growth and safe payouts. The last few days have upended the normal markets operations and created extreme risk and dare we say some good opportunities. Learn more about our full range of powerful features including the best charts on the web.

More Futures for Dow Jones

The amount you may lose may be greater than your initial investment. Before trading security futures, read the Security Futures Risk Disclosure Statement. Structured products and fixed income products such as bonds are complex products that are more risky and are not suitable for all investors. Before trading, please read the Risk Warning and Disclosure Statement. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success.

Dow Futures contracts are commonly used for hedge or speculative financial goals. Dow Futures contracts are used to hedge, or offset investment risk by commodity owners (i.e., farmers), or portfolios with undesirable risk exposure offset by the futures position. All of the Dow derived future contracts are a product of the Chicago Mercantile Exchange . They expire quarterly , and are traded on the CME Globex exchange nearly 24 hours a day, from Sunday afternoon to Friday afternoon. There is the most opportunity during this period as European traders are closing out their positions into the close which often leads to a nice increase in volume and volatility.

This means that a 5-year “strip” comprised of 20 individual contracts can be executed with just one transaction. Access a wide range of products with a comprehensive what is the difference between data and information suite of trading tools, algorithms and order types. Our records indicate the phone number provided is already scheduled for a call-back during the time selected.

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Shows the constituent stocks that have fallen in price the most over the last 24 hours, based on the percentage change since the last close of trading. Shows the constituent stocks that have risen in price the most over the last 24 hours, based on the percentage change since the last close of trading. One of the most attractive features of futures contracts is leverage. A trader can buy an E-mini Dow contract for about $5,500—and that futures contract is worth $5 for every point on the DJIA. A futures contract is a legally binding agreement between two parties in which they agree to buy or sell an underlying asset at a predetermined price in the future. The buyer assumes the obligation to buy and the seller to sell.

Both these three types of Dow futures are cleared on the CME group futures exchange. Trading swaps and over-the-counter derivatives, exchange-traded derivatives and options and securities involves substantial risk and is not suitable for all investors. The information herein is not a recommendation to trade nor investment research or an offer to buy or sell any derivative or security. It does not take into account your particular investment objectives, financial situation or needs and does not create a binding obligation on any of the StoneX group of companies to enter into any transaction with you. You are advised to perform an independent investigation of any transaction to determine whether any transaction is suitable for you. No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior written consent of StoneX Group Inc.

The table above shows the high level of activity on the forward month contracts which has an estimated volume of 109,273 on the day with the previous day’s open interest at 132,632. In contrast, the next contract month, June 2017 has an estimated volume of just 133 with previous day’s open interest at 555. The fact that the markets are open nearly round the clock also makes the Dow futures are one of the go-to markets for international traders and investors.

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Dow futures trade nearly round the clock

Today, the retail day trader can trade the Dow Jones Industrial Average in many different instruments ranging from CFD’s to ETF’s, options and of course futures contracts. Among these different ways one can invest or speculate on the Dow Jones, the Dow futures are the most popular and for a number of reasons, some of which are listed below. Due to market volatility, margin rates are subject to change at any time and posted rates may not reflect real-time margin requirements. Information furnished is taken from sources TradeStation believes are accurate. All margin calls must be met on the same day your account incurs the margin call.

The Dow futures contracts can be settled for cash but in most cases, the broker that you trade with, will automatically liquidate your position on or before the last trading day of the contract. Mini Dow futures provide investors and traders with an efficient way to gain speculative exposure to the U.S. stock market, or they may be used to hedge stock portfolios against overall market risk. Mini Dow futures may also be spread against other popular stock index futures. When the U.S. stock markets are closed, these index futures may continue to trade in after-hours sessions.

Margins are subject to change and/or revision at any time without prior notice. Please consult the trade desk about your account status, to request the most current rate, or for any additional questions you might have regarding margin. The E-Mini Dow Futures (/YM) contract is a financial instrument that can be traded. The /YM contract is very liquid and offers several benefits to the trader. This contract is leveraged and offers direct exposure to the price movements of the index’s composition.

The page will always show prices from the latest session of the market. In the United States broad-based index futures receive special tax treatment under the IRS 60/40 rule. Stocks held longer than one year qualify for favorable capital gains tax treatment, while stocks held one year or less are taxed at ordinary income.

These prices, which continue even while the underlying component stocks are closed, can be influenced by economic data releases or monetary policy decisions in other countries or geopolitical events. The Dow futures gain importance in the initial 30 minutes before the market open as the futures prices are considered to be a bell weather of how the cash market will perform on the day. Often referred to as the pre-market prices, these are nothing but the stock index futures prices calculated prior to the start of the trading day.

The Dow Index is a price weighted average index meaning that stocks with a higher share price have a stronger influence that stocks with relatively lower share price. The Dow Jones is referred by many different names including the Dow 30, Wall Street 30, the industrial average and so on. The Dow Jones is the second oldest stock market index in the U.S., only next to the Dow Jones Transportation Index which was also created by Dow. The DJIA got its name due to the fact that the index was historically tracking industrial companies. When the Dow Jones Industrial was launched, it started to track only 12 companies. Over the years, the Dow Jones Components have changed with the latest list of 30 companies have little bearing on the term industrial.

Dow futures contract specification

This is one of the reasons why that you will find quite a few technical futures trading strategies that specifically focus during the first hour of trading of the cash markets. The increase in volume often leads to gaps in the futures markets prices as well. There are different types of Dow futures contracts that you can trade, commonly known as the big and the mini Dow futures.

With futures trading, you can buy long or sell short with equal ease. Futures markets aren’t burdened with the same short-selling regulations as stock markets. If you expect the DJIA to go up, buy a futures contract; if you expect the index to decline, sell one short.

Click the “+” icon in the first column to view more data for the selected symbol. Scroll through widgets of the different content available for the symbol. The “More Data” widgets are also available from the Links column of the https://day-trading.info/ right side of the data table. Still, despite the broad mix of the Dow Jones industrial, the stock index is influenced by not just the corporate repots but also the domestic and international economic and political factors.