Dow Futures
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Welcome to Clean Financial's guide to trading the Dow market.
Quick and simple answers to common Dow questions:
Q) Where can I trade the Dow market?
Q) Where can I Trade for Free on the Dow market?
Q) How to Speculate on the Dow market?
Q) Where can I find Free Live Prices on the Dow market?
Q) Where can I find Free Dow Charts?
Q) Where can I Compare Dow Prices?
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Financial Spreads
"With FinancialSpreads.com you get all the normal
advantages of Spread Trading plus commission free trading on 2,000+ markets, 24 hour trading and..." read
Financial Spreads review.
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Daily / Futures Markets Comparison Tables:
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| FTSE 100 Daily - Spread Size |
1 |
1 |
1 |
1 |
1 |
1 |
1 |
1 |
| FTSE 100 Daily - Min Stake |
£1 |
£0.50 |
£2 |
£1 |
£1 |
£1 |
£1 |
£1 |
| FTSE 100 Future - Spread Size |
4 |
4-8 |
6 |
4 |
4 |
3 |
4 |
4 |
| FTSE 100 Future - Min Stake |
£1 |
£0.50 |
£2 |
£1 |
£1 |
£1 |
£1 |
£1 |
| Wall St Daily - Spread Size |
2 |
1 |
2 |
2 |
2 |
2-4 |
2 |
2 |
| Wall St Daily - Min Stake |
£1 |
£0.50 |
£1 |
£1 |
£1 |
£1 |
£1 |
£1 |
| DAX 30 Daily - Spread Size |
1 |
1 |
1 |
1 |
2 |
1 |
1 |
1 |
| DAX 30 Daily - Min Stake |
£1 |
£0.50 |
£2 |
£1 |
£1 |
£1 |
£1 |
£1 |
| S&P 500 Daily - Spread Size |
4 |
4 |
5 |
4 |
3 |
5 |
4 |
4 |
| S&P 500 Daily - Min Stake |
£1 |
£0.50 |
£1 |
£1 |
£1 |
£1 |
£1 |
£1 |
| Nasdaq 100 Future - Spread Size |
3 |
4-10 |
4 |
3 |
3 |
4 |
3 |
3 |
| Nasdaq 100 Future - Min Stake |
£1 |
£0.50 |
£4 |
£1 |
£1 |
£1 |
£1 |
£1 |
Comparison Notes
Where can I Trade the Dow Market?
You can currently trade the Dow market at:
Where can I Trade the Dow Market for Free?
It depends upon what you mean by free. If you're looking for a free Demo Account where you can practice your trading see below.
Tax Free. If you are looking for a free trading platform then don't forget that in the UK spread trading is tax free*
You can also speculate on the Dow market commission free and with no brokers' fees at:
Free Demo Account with Dow Trading
If you're looking for a free Practice Account / Test Account where you can test your trading theories on over 2,000 markets, including the Dow market, then you can you can always try:
Each of the above currently offers a free demo trading account.
How to Spread Trade on Indices - Dow Futures
As with a wide variety of financial markets, investors can speculate on stock market indices, such as the Dow, to either increase or decrease.
Looking at the Financial Spreads spread trading website, they are currently valuing the Dow June Futures market at 12170 - 12178. This means an investor could spread trade on the Dow market:
- Closing above 12178, or
- Closing below 12170
On the closing date for this 'June' market, 16-Jun-11.
When spread trading on the Dow index you trade in £x per point. As a result, if your stake was £2 per point and the Dow moves 5 points then there would be a difference to your P&L of £10. £2 per point x 5 points = £10.
For short term trading on the Dow also see Dow Jones Rolling Daily Spread Trading.
Dow Futures Spread Trading Example
If you consider the above spread of 12170 - 12178 and assume:
- you have done your analysis of the stock markets, and
- you think that the Dow futures market will finish above 12178 by 16-Jun-11
then you may decide that you want to buy a spread trade at 12178 and risk, for the sake of argument, £1 per point.
This means that you win £1 for every point that the Dow index rises higher than 12178. On the other hand, it also means you will make a loss of £1 for every point that the Dow market falls below 12178.
Considering this from another angle, if you were to buy a spread trade then your profit/loss is calculated by taking the difference between the closing price of the market and the price you bought the spread at. You then multiply that price difference by your stake.
With that in mind, if, on the expiry date, the Dow index settled at 12275, then:
Profit = (Closing Value - Opening Value) x stake
Profit = (12275 - 12178) x £1 per point stake
Profit = 97 x £1 per point stake
Profit = £97 profit
Trading stock market indices, whether by spread trading or not, may not go to plan. With the above, you had speculated that the futures market would increase. Of course, it might fall.
If the Dow fell and settled lower at 12090, then you would end up making a loss and losing money on this spread trade.
Loss = (Closing Value - Opening Value) x stake
Loss = (12090 - 12178) x £1 per point stake
Loss = -88 x £1 per point stake
Loss = -£88 loss
Note: Dow June Futures market quoted as of 17-Feb-11.
Where can I Find Free Live Prices on the Dow Market?
If you want to access live market data then you could do worse than opening an account with a firm like Financial Spreads.
Also, you don't have to trade with them, if you just open an account (free) then their data is free. What's the catch? You'll get the odd email or letter from them. In the example below you can also see that their free candlestick charts are also useful.
There are also live prices available at:
Where can I Find Free Dow Charts?
As discussed above, you can get free charts with UK spread trading companies like Financial Spreads.
You can alter the candlestick charts to see data by the minute, by the hour, by the week and so on, plus there are many other settings to help you analyse the markets.
FinancialSpreads.com also have another handy tool in their Demo account (mentioned above). You can open a free Demo account and place demo trades while you practice buying/selling the markets with no risk or cost attached.
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Financial Spreads
"With FinancialSpreads.com you get all the normal
advantages of Spread Trading plus commission free trading on 2,000+ markets, 24 hour trading and..." read
Financial Spreads review.
|
Risk Warning: Spread trading carries a high level of risk to your capital. You may lose more than your initial investment. It may not be suitable for all investors. Only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved and seek independent financial advice where necessary.
'Dow Futures' by DB, updated 30-Apr-12
For related pages also see:
Index Spread Trading, updated 17-May-12
Index Spread Trading - Where to open an Indices Spread Trading account, where to find Index spread trading charts, Indices risk management tips, stock market index spread trading examples and...read article: Index Spread Trading.
Commodities Spread Trading, updated 17-May-12
Commodities Spread Trading - Where to open a Commodities Spread Trading account, where to find Commodity spread trading charts, Commodities risk management tips, Commodities examples and...read article: Commodities Spread Trading.
Financial Spread Trading, updated 17-May-12
Financial Spread Trading - A look at where you can open a financial spread trading account, where to get live financial spread trading charts, risk management tips, spread trading examples and...read article: Financial Spread Trading.
Forex Spread Trading, updated 17-May-12
Forex Spread Trading - A look at where you can open a forex spread trading account, where to get live forex charts, forex risk management tips, trading examples and...read article: Forex Spread Trading.
Commodities Futures, updated 30-Apr-12
Commodities futures. Where to find Commodities real-time prices and charts, how to trade the Commodities markets and the most popular Commodities futures questions plus...read article: Commodities Futures.
FTSE Futures, updated 30-Apr-12
FTSE futures. Where to find FTSE real-time prices and charts, how to trade the FTSE index and the most popular stock market futures questions on FTSE plus...read article: FTSE Futures.
Dow Futures, updated 30-Apr-12
Dow futures. Where to find Dow real-time prices and charts, how to trade the Dow index and the most popular stock market futures questions on Dow plus...read article: Dow Futures.
S&P 500 Futures, updated 30-Apr-12
S&P 500 futures. Where to find S&P 500 real-time prices and charts, how to trade the S&P 500 index and the most popular stock market futures questions on S&P 500 plus...read article: S&P 500 Futures.
DAX Futures, updated 30-Apr-12
DAX futures. Where to find DAX real-time prices and charts, how to trade the DAX index and the most popular stock market futures questions on DAX plus...read article: DAX Futures.
Gold Futures, updated 30-Apr-12
Gold futures. Where to find Gold real-time prices and charts, how to trade the Gold market and the most popular commodities futures questions on Gold plus...read article: Gold Futures.
Crude Oil Futures, updated 30-Apr-12
Crude Oil futures. Where to find Crude Oil real-time prices and charts, how to trade the Crude Oil market and the most popular commodities futures questions on Crude Oil plus...read article: Crude Oil Futures.
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