Trade Dow Jones Future 2022 – Trade The Best Futures Cheaply

Christina Clarke
October 11, 2021
A Dow Jones futures contract on the Dow Jones that combines the 30 most important listed companies in the USA in an index.
dow-jones-future

A Dow Future is a futures contract on the Dow Jones that combines the 30 most important listed companies in the USA in an index.

This financial product is a derivative with which an increased return can be achieved through a unique constellation of pricing and execution of deadlines.

However, the risk is also many times higher.

This article will clarify what precisely a Dow future is all about and how you can profit from the future.

Table of Contents

What Is A Dow Jones Future?

A Dow Future is a futures contract on the American Dow Jones stock index traded on various stock exchanges. Mostly in the USA, but you can also find related financial products in this country.

  • The Dow Jones itself comprises the 30 largest and most important American listed companies. Accordingly, it is a price index.
  • Therefore, a futures contract on this index is a derivative that can increase both the profits and the losses of an underlying asset many times over.
  • In this country, people like to talk about trading certificates, which works in a very similar way: one takes the current price of an underlying asset to at least theoretically buy or sell it in the future.
  • If the underlying asset, the Dow, gains in value, the futures contract also gains a multiple of it. In this case, the return results from the Dow Future Live price.

By allowing the asset itself not only acquire must, but the potential return also rises.

What Are Dow Futures There?

There are a wide variety of Dow Future contracts on the exchange. In addition, there are also the Mini Dow Futures and Dow Future CFDs. These are dealt with in the following section.

dow-jones-future

1. Dow Futures (US 30)

The Dow Future is the classic version of the derivatives on the Dow Jones. You can also find them as US 30 futures. These futures contracts are normally limited in terms of their term.

The tick size is 1. The tick value is $ 5. Accordingly, the respective contract size is a multiplication of both parameters.

Dow futures work in a similar way to CFDs. However, here the profits and losses are multiplied.

At a certain date, which has been set in advance, they then suffer losses or receive an amount paid out.

These contracts are also freely tradable, which is why the Dow Future Chart can develop its price in real-time.

2. Mini Dow Futures

Mini Dow Futures are just slimmed-down versions of the same product.

After the value of the Dow Jones reached new heights over the years, regular ( standard full-size futures) were hardly attractive to many market participants.

They just got too big.

The market responded with offers such as the E-Mini Dow Jones Future. Here the contract value is no longer directly related to the index points but results from the so-called “underlying”.

Accordingly, the following formula applies to Mini Dow Futures:

Contract value = current price of underlying x multiplier.

3. Micro Dow Futures

Offers such as the Micro E-mini Dow Jones Industrial Average are still targeting Dow Jones values but focus on specific industries, in this case on blue-chip companies.

In addition, the tick value is only $ 0.50.

4. Dow Future CFDs

A Dow Future CFD is a so-called Contract of Difference. In South Africa, a contract for difference usually comes without a limited term.

There is no fixed term on which your future CFD is due. So you have the opportunity to sell your Dow Future at any time. You can also short or hedge certain positions.

You can conclude future CFDs on indices and commodities, currencies, stocks, or bonds. So a CFD account is, of course, required .

Where Can You Trade The Dow Jones Future?

Even if Dow Futures are traded on the exchanges of CME and ECBOT, many providers now allow access to financial products.

We recommend the online broker TradeATF for trading Dow Futures. This is the test winner who offers its users the most favourable conditions.

How Can You Trade The Dow Future – Our Step-By-Step Instructions From The Test Winner TradeATF

tradeatf review

Before looking at the Dow Future Live course, one must first clarify how and where best such financial products can be traded.

Step 1: Choose Broker

You can find various interesting brokers in our overview of the best providers who let the Dow Future Real-time trade. However, the race is made by the offer from TradeATF.

The platform impresses with its design and generally attractive conditions. Accordingly, we want to introduce the consequences of the step-by-step instructions at TradeATF.

Step 2: Registration

Before we can start investing in Dow Futures, having an account with a good broker is an essential requirement for trading.

First of all, you enter your data, which you also have to verify. The information requested includes name, date of birth, address, but also information about the investor’s personal financial knowledge.

Step 3: Deposit

Now we can take care of the deposit. This can be done in different ways, as TradeATF offers PayPal as well as credit card payments, normal transfers or service providers such as Sofortüberweisung, Skrill and Neteller .

To make sure that you can then trade Dow Futures , only the minimum deposit has to be observed. This is normally $ 200 or $ 500 if you choose bank transfer as the payment method.

Step 4: Trade Futures

Now it goes directly to the Dow Future Chart in real time. You can find the corresponding asset by clicking on the ” Markets ” category. Here you select the indices accordingly.

The Dow Future Investing then works with the abbreviation DJ30, which stands for Dow Jones 30th.

Dow Jones Future Investing – Is It Worth It? Our analysis

Does it make sense to invest in Dow futures at all?

We want to get to the bottom of this question with the following advantages and disadvantages. First, it is clear that such derivatives can generate strong returns with comparatively low stakes.

There is also an interesting opportunity to invest in US stocks through a specialized financial product. In this way, you can take advantage of a wide variety of market constellations from the Dow Future in real-time.

  • Increased returns by multiplying price gains
  • Underlying does not have to be bought
  • Profits are possible in all market situations
  • Particularly suitable for experienced investors
  • Very high risk
  • Dow future investing is complicated

So, it is certainly exciting to analyze the index with a Dow Future. However, some risks are much higher than with regular equity or ETF investment with such a derivative.

Thus, trading the Dow Future is more suitable for advanced traders.

dow-jones-future

Dow Jones Futures Real Time | Course history At A Glance

Let’s take a look at the Dow Future real-time price. Since it is a very liquid asset, the price is subject to constant change.

Dow Future Live: Dow Future Course

This Dow Future Chart in real time shows the current price of a corresponding derivative.

Dow Futures Index Financials overview

On the stock exchange, there are constantly new offers for futures while other contacts expire. In the following, we present an example value of a Dow future. A Dow Future Real-time price is used here.

For example, the Dow Future contract size is relevant for analysis. The so-called tick size indicates the slightest possible price movement.

Dow Future Trading Hours

The Dow Future trading hours are subject to the requirements of the US Index  Future Exchanges CME and ECBOT. Therefore, new positions are almost always possible here.

Investing in Dow Futures begins on Sunday at 12:00 a.m. and continues until 10:15 p.m. The following table provides information about the US times of the Dow Future Index or the Dow Mini Future category

Micro E-mini futures
SurnamesymbolExchangeSun OpenOpenClose
Micro E-mini S&P 500MESCME / Globex5:00 p.m.3:30 p.m.4:00 p.m.
Micro E-mini Nasdaq-100MNQCME / Globex5:00 p.m.3:30 p.m.4:00 p.m.
Micro E-mini DowMYMCME / Globex5:00 p.m.3:30 p.m.4:00 p.m.
Micro E-mini Russell 2000M2KCME / Globex5:00 p.m.3:30 p.m.4:00 p.m.
Micro DowFDXSEurex1:00 a.m.1:00 a.m.3:00 p.m.
Micro STOXXFSXEEurex1:00 a.m.1:00 a.m.3:00 p.m.

Asset

WKN969420
ISINUS2605661048
Ticker DEDJIA
countryUnited States
genusindex
unit$
Dow Futures Trading Fees – What Does A Futures Contract Cost?

The Dow Future Investing is, of course, only taking into account possible fees. The financial products are similar here, regardless of whether you have a Dow Mini Future or a Dow Micro Future.

Using the following example, we will show you the fees for trading Dow Futures:

  • Purchase of Dow Futures worth € 1,000
  • Hold the Dow Futures for a month and then sell
  • No course changes in the 30 days

In this example, we compare the fees of Libertex, TradeATF & Plus500 :

ProvidersLibertexTradeATFPlus500
Depositfor freefreefor free
Purchase fees€ 2.20free€ 2.54
Holding feesfor freefreefor free
Sales charges€ 2.20spreads€ 2.54
Total fees€ 4.40Reasonable € 5.08

Is It Worth Trading Futures For Private Investors?

The Future Investing on the Dow is especially worthwhile for experienced investors who want to increase investment return. There are various futures on the Dow Jones.

Dow Jones performance

Period%
Intraday-0.29
One week-0.71
One month-0.54
3 months7.88
SixThree months15.53
One year38.41
Three years37.45
Five years94.00
ten years121.49

In any case, the index itself is extremely priced stable in the long term and ensures good returns.

How To Trade The Dow Mini Future As A Beginner Trader?

As a novice trader, the Dow Mini Future is a good choice. You could also on the Dow Micro Future dodge.

In any case, beginners should first use a trading demo account to know the financial products.

Dow Jones Futures At TradeATF – Why We Recommend Trading Dow Futures At TradeATF

Ideally, futures on the Dow Jones are purchased with the help of the online broker TradeATF. A free account, demo account and a variety of trading options ensure an excellent offer.

The CopyTrader, which contains special portfolios of experienced traders, is particularly interesting for beginners.

The Dow Future Chart in real-time then usually refers to the existing CFDs.

In any case, users can follow Dow Future Live courses and comment on them in the feed. Now, certain and then, it is worth taking a look at the existing articles.

Dow Jones Futures Conclusion – Our recommendation And Rating

A Dow Future course can be attractive. However, the nature of the financial product as a derivative opens up disproportionate returns.

However, one must also point out the increased risks. Therefore, we recommend the strong broker TradeATF for trading futures on the Dow.

It is worth looking at the free demo account, which shows the Dow Future Live and real data.

A suitable strategy should always be used when trading Dow Futures. Beginners could initially also consider the smaller  Dow Mini Future or Dow Micro Future offers.

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FAQs

A Dow Future is a futures contract on the American Dow Jones stock index, which tracks the USA’s 30 most important listed companies. It can be traded on most exchanges. A future on the Dow is a bet on the index’s performance due to the increased risk. Investors can benefit disproportionately from the smallest price breakouts. However, losses can also be multiplied. Thus, the prospects for returns with Dow Futures are higher, but the risk is also drastically increased.

With a Dow Future, every price movement is multiplied. There are futures contracts with a limited term and with an unlimited term. A knock-out limit can also be set up. As a rule, futures contracts are limited in time. This article describes exactly how futures contracts work.

The way a future work is to buy an underlying asset for a future price. In general, only the asset changes with a future investment on a different underlying. There are also mini and micro Dow futures.

There are numerous investment alternatives. For example, you can invest in on-exchange as well as over-the-counter investments. At TradeATF, the selection of potential investments is broad. Even cryptocurrencies can be traded here.

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