Dow Futures
The Dow Jones Industrial Average and DOW Futures Products
The Dow Jones Industrial Average is a stock index comprising 30 corporations from a variety of industries. The current list of corporations that are part of the DOW are 3M, Alcoa, American Express, AT&T, Bank of America, Caterpillar, Boeing, Chevron, Coca-Cola, Cisco, Exxon Mobil, DuPont, Hewlett-Packard, General Electric, Home Depot, IBM, Intel, Johnson & Johnson, JPMorgan Chase, McDonald's, Kraft Foods, Merck, Microsoft, Pfizer, Procter & Gamble, United Technologies Corporation, Travelers, Verizon, Walt-Disney, and Wal-Mart. The industries these corporations are in range from Banking, Chemical, and Retail to Technology, Software, and Telecommunications industry.
Dow Futures
As stated earlier, Dow Jones Industrial Average comprises of 30 companies, and Dow futures contracts are based on this index. There are numerous futures products based on the Dow Jones Industrial Average. These products include the BIG DOW DJIA, E-Mini Dow, and DJIA.
The Big Dow DJIA is a futures contract with a $25 multiple. So, if Dow Jones Industrial Average futures was at 10099, the contract size for the $25 version would be $25 * 10,099 = $252,475. So, you would be buying a DJIA futures contract worth $252,475. For example, if an investor bought 1 contract of Big Dow DJIA at 10,099 in early trade, and closed the trade when DOW futures was at 10,150, the investor assuming went long would have netted 51 * $25 = $1275 for that single trade. The $51 was the rise in Dow futures from 10,099 to 10,150 and the $25 was the multiple of Big Dow DJIA contract. DJIA is traded at Open outcry Monday through Thursday 8:30 AM to 3:30 PM CST, and can be trade electronically through CME GLOBEX Monday through Thursday 3:30 PM to 8:15 AM.
The E-Mini Dow futures is $5 multiple contract, and as such Dow futures at 10099 would be worth $5 * 10,099, which would be $50,495. So, 1 contract for a $5 E-Mini Dow would be worth $50, 495. Similar to the earlier example, a rise of 51 points in E-Mini Dow futures would lead to a trader pocketing 51 * $5, which would be $255.The DJIA futures product on the other hand is a $10 multiple contract. So, at $10,099 a DJIA futures contract would be worth $100,099. If an investor bought the futures contract at 10,099 and sold it at 10,150, a rise of 51 points in Dow futures would give the investor a profit of $510 excluding any commissions and interest expenses.
Other Dow Futures and Indexes
The article covered futures products that were based on Dow Jones Industrial Average. Besides Dow Jones Industrial Average there are many other indexes, these include The Global Dow, Dow Jones BRIC 50 Index, Dow Jones Utility Average, Dow Jones Global Titans 50 Index, Dow Jones Corporate Bond, Dow Jones China Indexes, Dow Jones Precious Metals, Dow Jones Hedge Fund, and many more. All of these indexes cover various aspects of world market and industries. Indexes like The Global Dow cover blue-chip, large influential 150 corporations from around the world, while Dow Jones REIT (Real Estate Investment Trust Market) covers the performance of REIT industry. All of these indexes have various futures products that can be traded.
I would also suggest you guys check out Natural Gas Prices and Copper Prices.
Dow Futures
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