Futures Stocks Bloomberg
Futures Stocks Bloomberg
Hidden Dow Futures Secret
Have you ever traded Dow Futures? Dow futures are futures contracts based on the famous Dow Jones Industrial Average (DJIA). Dow Index is a price weighted index of 30 blue chip stocks listed on the New York Stock Exchange (NYSE). Dow Index is widely quoted on financial channels like CNBC and Bloomberg as a barometer of market sentiment on NYSE. Knowing this incredible Dow Futures secret can make you rich.
Now, almost all the stock exchanges have a stock index related to each one of them. Trading stock index futures contracts have become popular with the day traders in the last decade. This way a trader can trade against the market instead of trading a single stock or a few stocks. Stock indexes mirror the market sentiment and a trader by trading these stock index futures contracts can profit from the volatility in the stock market.
Now, futures contracts have one more advantage as compared to stocks, no uptick rule applies on futures contracts. So when you trade Dow Futures or for that matter any other futures contract, you can go short as easily as you can go long. Now suppose the Dow Index is going down, you can easily profit by going short on Dow futures as compared to stocks that need an uptick before you can go short. Infact, there are a number of stocks that cannot be shorted so you can’t do anything about it. This makes futures trading far more profitable as compared to stock tradng. Of course, there is an inherent risk in trading futures. Futures market is highly volatile and an inexperienced trader can get wiped out in minutes.
Dow futures get traded on the Chicago Board of Trade (CBOT). The market value of the Dow Futures contract is calculated by multiplying the Dow Index points with $10. So, if the Dow Index is at 9,000 points, the market value of the Dow Futures contract will be $10X9,000= $90,000. Now, many small traders like you and me are unable to buy such expensive contracts. Each point movement on the Dow Index translates into $10 profit or loss for you.
Keeping this in view, CBOT created another Dow Futures contract known as the Dow E-Mini Futures contract. The market value of Dow E-Mini contract is calculated by mutliplying the Dow Index with $5. So in the above case where the Dow Index was at 9000 points, the value of Dow E-Mini futures contract would be $45,000 making it more affordable to small traders.
Most of the futures contracts including Dow Futures now get traded electronically on GLOBEX platform. Now, there are futures contracts on other stock indexes like S&P Futures, NASDAQ Futures that also have their E-Mini versions. Many day traders trade one or more of these contracts. It is always better to specialize in trading only one type of contract. So you can specialize in Dow Futures or S&P Futures whatever better suits you. But once,you know this amazing secret about Dow Futures never lose trade system, you are definately going to trade Dow Futures. This secret is based on something fantastic that happens after every few years to the Dow Index and is repeated for years. The best way to trade Dow Index is to trade Dow Futures. If you know this hidden secret and the exact Dow Futures Trading algorithm, you can make incredible profits!
Trader Education US Stock Futures Extend Losses After Data (Nasdaq)
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