Dow Emini Futures has recently become a very popular trading method. Being one of the best trading opportunities available today, trading with Dow Emini Futures is recommended for both experienced Emini traders and beginners. It gives traders the opportunity to begin small, and gradually advance to higher levels as their experience keeps growing as well.
Many traders speculate on whether or not to trade in the Emini Dow Futures. There are various reasons why people are interested in this mode of trading, especially when comparing it to other forms of trade like the overestimated foreign exchanges.
One major reason for why people prefer this method is because Dow Emini Futures is not as prone to manipulations. This is due to the fact that it an instrument which follows an index, i.e. the DJIA (Dow Jones Industrial Average) index, which is the mother of all index. Dow Emini Futures closely follows the DJIA, which is where its name originates from as well – the Dow Emini or Mini Dow.
Dow Jones Industrial Average is made up of 30 stocks. These stocks include some of the hugest companies all through the US; for instance like the IBM, Cisco systems, Intel and Microsoft and others. The price action or movement of the Dow Jones Industrial Average is simply an average of the 30 stocks and reflects in the Futures markets.
Dow Emini Futures is generally depicted by the symbol (YM) on the CBOT (Chicago Board of Trade), which is also known as the CME (Chicago Mercantile Exchange). Each and every contract traded in this trading method is only worth $5 for every movement point. This gives beginners the opportunity to wet their feet with margins of as low as $500.
Like Emini trades generally, Dow Emini trades are based on electronic exchanges. This infers that your orders are quickly routed and almost immediately filled on the FCFS (first come first served) basis. This gives all the participants in the market an equal and fair ground to trade on. Emini Futures trading makes it possible to have orders placed inside the bid/ask or spread. This enables traders to set aside the spread, in case their order is filled. This is a great tool of its own for scalpers. Broker’s are always on the watch-out for their clients’ best interests when it comes to Emini Futures trading. An Emini Futures broker makes just a meager commission as his fee – that too only when the orders have successfully been routed, matched or filled.
Among some of the safest vehicles in Emini trading is the Index Futures trading due to the strict NFA and SEC regulations it requires brokers to adhere to. Here are a few tips on how to successfully make off your trade like a brigand:
- Do not trade when the US stock market is not open – A contract is most active in an open market because that’s when the major trades are going on.
- Keep an eye on Dow Jones – Keep an eye on the current prices of all 30 stocks. This will act a thermometer, keeping you off bad trades.
- Be very Patient – Wait till the right trading opportunity comes.
- Protect your capital – Always ensure proper money management.
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