Why trade Dow Emini Futures?

Why trade Dow Emini futures?

There are many reasons why someone interested in financial trading and speculation should choose to trade Index Futures over other markets, such as the Foreign Exchange.

One of the main reasons is that the Dow Emini Futures is less prone to manipulation due to it’s nature being an index following instrument. The Dow futures follows the mother Index (DJIA) Dow Jones Industrial Average very closely and hence the reason it is named after and called the Mini Dow or Dow Emini Futures.

The Dow Jones Industrial Average (DJIA) is comprised of 30 stocks which consist of some of the largest companies in the U.S., including the likes of Microsoft, Intel, IBM and Cisco Systems. The price movement of the DJIA is a simple mathematical average of these 30 stocks and is reflected in the emini futures market.

The Dow Emini, symbol: YM trades on the Chicago Board of Trade (CBOT) also known as Chicago Mercantile Exchange (CME), it trades on contract basis and per point movement in the market. Each contract that is purchased is worth only $5 per point movement, which gives the small investor an opportunity to start trading with just $500 in margin requirements per contract. 

Because the emini futures trade on an electronic exchange, your orders get routed quickly and filled almost instantaneously on a ‘first come first served basis’ giving all market participants an opportunity to play on fair grounds.

Emini Futures trading also allows for orders to be placed inside the spread at the Bid or the Ask, this allows the trader to save the spread should their order get filled, a great tool in itself for scalpers. The other benefit as to limit orders in the market is that the market must fill you and cannot move past before all orders get filled or matched at an earlier price. This however does not apply to stop orders which are mainly price triggered and remain with your broker or on the platform until triggered and executed as market orders.

Futures brokers are generally looking for their client’s best interest. They only charge a small commission fee when orders are successfully routed to the exchange and filled or matched.

The Dow Emini Futures, in recent years has become increasingly popular due to being one of the best opportunities around for both beginner and experienced traders, who want to profit from financial speculation.

It is also one of the safest vehicles to invest in due to strict SEC and NFA regulations which brokers are require to adhere by.

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