What are E-mini Dow (YM) futures?
The E-mini Dow (YM) is a financial futures instrument which enables traders to speculate on the future value of the Dow Jones Industrial Average. Why Trade E-mini Dow ($5) Futures?
How does the YM work?
The YM trades practically around the clock electronically and draws participants from around the globe. Download NinjaTrader’s award-winning platform & try SIM trading E-mini Dow Futures with a free futures data trial today! NinjaTrader is always free to use for advanced charting, backtesting and trade simulation.
What is the trading symbol and tick size of YM?
Trading Symbol: YM Contract Size: $5 X Dow Jones Industrial Average Pricing Unit: U.S. Dollars Tick Size: 1
What are YM futures and how do they work?
Instead of trading the equity products offered by each company, traders can gain exposure to all of them with one contract of the YM. YM Futures offer investors both long and short opportunities to trade the DJIA in a more cost-effective way than Dow-based ETFs.
What is the YM in futures?
The DJIA is the world's most widely followed stock index and the leading U.S. stock market benchmark....Mini Dow futures contract specifications.ExchangeChicago Board of Trade, YMMinimum Tick Size and Value1.00, worth $5.00 per contract.3 more rows
What is Micro YM?
Micro E-mini Dow futures empower traders to speculate the world's most closely followed stock index in a contract 1/10th the size of standard E-mini Dow futures (YM). The benchmark Dow Jones Industrial Average is composed of the 30 biggest and most dominant companies in the US.
What is DJIA E-Mini?
Representing a portion of the standard Dow Jones Industrial Average futures, these E-mini products allow you to short the index without stock loans or variable fees. Enjoy added flexibility and efficiency with the ability to execute a basis trade relative to the official close.
What is the use of Micro future?
Micro futures allow investors to trade against the stock market at large. They're priced so that ordinary investors can afford to trade futures on the major market indices, which have otherwise gotten so expensive that only major investors can afford to trade those futures.
How many ticks is a point YM?
The size of the tick determines how many ticks it takes to increase the point. Since each tick in the S&P 500 E-mini is worth 0.25, there are four ticks to a point. In gold futures, where the tick size is 0.10, there are 10 ticks to a point.
How much money do you need to trade micro futures?
The margin required to trade these products is estimated to be about $660 for the Micro E-mini S&P 500 and the micro-sized Dow, $836 for the Micro E-mini NASDAQ-100 futures contract, and less than $500 for the "petite" Russell 2000.
What is the difference between Dow and Dow futures?
Dow Futures are financial futures which allow an investor to hedge with or speculate on the future value of various components of the Dow Jones Industrial Average market index. The futures instruments are derived from the Dow Jones Industrial Average as E-mini Dow Futures.
Can I buy Dow futures?
The first step to trading Dow futures is to open a trading account or, if you already have a stock trading account, to request permission from your brokerage to trade futures. Most major brokerages such as E*Trade, TD Ameritrade, and Interactive Brokers offer stock index futures.
What is the symbol for Dow futures?
YMDow Futures Mini Sep '22 (YMU22)Barchart SymbolYMExchange SymbolYMContractE-Mini Dow Jones Industrial AverageExchangeCBOTTick Size1 point ($5.00 per contract)8 more rows
When did micro futures start?
May 2019On 11 March 2019 CME Group announced the launch of Micro E-mini futures on the S&P 500, Nasdaq-100, Russell 2000 and Dow Jones Industrial Average indexes. The new contracts will be one-tenth the size of existing E-mini futures, and are set to be available for trading in May 2019.
Are micro futures liquid?
Micros are available on the most liquid equity index futures CME Group made the deliberate decision to launch the micro E-mini futures contracts in four of the most liquid and most actively traded equity indices: S&P 500, Nasdaq-100, Russell 2000 and Dow Jones Industrial Average.
How do E-mini futures work?
The E-mini S&P 500 futures contract tracks the S&P 500 Index. It trades on the Chicago Mercantile Exchange under the ticker symbol ES. The contract tracks the stock prices of the largest U.S. companies listed on the S&P 500 Index.
What is stock market?
The stock market refers to the collection of markets and exchanges where regular activities of buying, selling, and issuance of shares of publicly-held companies take place.
When was the stock market invented?
The first stock market in the world was the London stock exchange. It was started in a coffeehouse, where traders used to meet to exchange shares, in 1773. The first stock exchange in the United States of America was started in Philadelphia in 1790.
What does it mean when a woman trades in the stock market?
If one says that she trades in the stock market, it means that she buys and sells shares/equities on one (or more) of the stock exchange (s) that are part of the overall stock market.
How does the e-commerce market work?
It allows companies to raise money by offering stock shares and corporate bonds. It lets common investors participate in the financial achievements of the companies, make profits through capital gains, and earn money through dividends, although losses are also possible.
What is secondary market?
This constitutes the secondary market. The stock exchange earns a fee for every trade that occurs on its platform during the secondary market activity . The stock exchange shoulders the responsibility of ensuring price transparency, liquidity, price discovery and fair dealings in such trading activities.
Is the stock market a primary market?
Operating under the defined rules as stated by the regulator, the stock markets act as primary markets and as secondary markets . As a primary market, the stock market allows companies to issue and sell their shares to the common public for the first time through the process of initial public offerings (IPO).
Stock market news live updates: Stocks extend losses as Russia-Ukraine tensions build
Stocks extended declines Friday to close the week in negative territory with geopolitical tensions intensifying to contribute to a further risk-off tone in markets.
Stock market news live updates: S&P 500 sinks further into correction, setting new 2022 low with Russia-Ukraine in focus
Stocks extended losses on Wednesday after a steep sell-off during Tuesday's trading day, which pushed the S&P 500 and Dow to their lowest settlements so far of 2022.
Stock market news live updates: Stocks come back from session lows to end mixed after Fed minutes
Stocks dipped Wednesday after jumping a day earlier when an apparent deescalation of Russian advances in Ukraine helped boost U.S. equities.
Stock market news live updates: Stocks extend losses as Russia-Ukraine tensions build
Stocks extended declines Friday to close the week in negative territory with geopolitical tensions intensifying to contribute to a further risk-off tone in markets.
Stock market news live updates: Stocks come back from session lows to end mixed after Fed minutes
Stocks dipped Wednesday after jumping a day earlier when an apparent deescalation of Russian advances in Ukraine helped boost U.S. equities.
What is the stock market?
The term "stock market" often refers to one of the major stock market indexes, such as the Dow Jones Industrial Average or the Standard & Poor's 500. When you purchase a public company's stock, you're purchasing a small piece of that company.
How does the stock market work?
The stock market lets buyers and sellers negotiate prices and make trades. The stock market works through a network of exchanges — you may have heard of the New York Stock Exchange or the Nasdaq. Companies list shares of their stock on an exchange through a process called an initial public offering, or IPO.
What does it mean when the stock market is down?
Most often, this means stock market indexes have moved up or down, meaning the stocks within the index have either gained or lost value as a whole. Investors who buy and sell stocks hope to turn a profit ...
Who regulates the stock market?
The stock market is regulated by the U.S. Securities and Exchange Commission, and the SEC’s mission is to “protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.".
Is day trading risky?
Day trading, which requires rapidly buying and selling stocks based on price swings, is extremely risky. Conversely, investing in the stock market for the long-term has proven to be an excellent way to build wealth over time.
What is the abbreviation for the stock market?
Market Abbreviations. Common market abbreviations are alphanumeric codes to indicate stock exchanges, market indexes and order types. Common market and index abbreviations include "NYSE" for the New York Stock Exchange, "DJIA" for the Dow Jones Industrial Average and "S&P 500" for the Standard & Poor's 500 Index.
What is a stock symbol?
Stock symbols are usually one- to four-letter codes identifying publicly traded companies, closed-end mutual funds, exchange-traded funds and other securities that trade on the stock markets.
What are financial abbreviations?
Financial Abbreviations. Financial abbreviations are short forms of financial terms and concepts relevant to stocks and other market securities. "EPS," "PE" and "div yld" are common financial abbreviations.
What is a ticker in stock market?
Tickers are real-time or time-delayed displays of financial information about publicly traded companies. The ticker components include the stock symbol, 52-week low and high prices, high and low prices for the current trading session, last price at which the stock traded, change in price from the previous day's close, volume of shares traded, dividend yield and PE ratio. The ticker communicates sufficient information in compact form for you to make informed trading decisions.
What does S stand for in stock market?
S stands for suspended which means that trading on the share or investment product has been suspended. A halt in trading activity for an extended period of time normally occurs when there is a lack of financial information on the share.
What does DY stand for in stock?
DY stands for Dividend Yield which is a financial ratio that shows how much a company pays out in dividends each year relative to its share price. Without considering any capital gains that you would receive when selling your stock, the dividend yield is the return on investment for a stock.
What does "high" mean in stock?
Shares are always priced in cents in the share pages. High refers to the highest price that the stock traded for the day. Low refers to the lowest price that the stock traded for the day. 12m high - this is the highest price that the stock traded at during the past 52 weeks. If you are going to buy a share and it is currently trading near ...
What happens when the JSE suspends a stock?
Once the JSE suspends a share, shares of that company cannot be traded on the market until the suspension is lifted or lapses. The exact amount of time for the suspension is determined on a case-by-case basis. According to Seedat, to invest on the stock market, one needs to understand how indices work.
How many letters are in a company's name?
To save space, companies are only allowed seven letters for their name. Along with the abbreviated name, some share pages also include a three letter abbreviation for the company. Regular traders become so accustomed to using these abbreviations that they may refer to these instead of the full name of the company.
What is dividend yield?
Dividend yield is used as a measurement of the cash flow you receive back for each rand invested. Investors depending on a steady stream of income from their investment portfolio would look at this figure in order to select investments that pay high, stable dividends.
Points Are Not Percentages
Be careful not to confuse points with percentages or basis points (bps). When you hear someone say the stock dropped 10 points, the significance of that drop depends on how high the share price is.
Example
Let's consider a simple example: If the fictional company TSJ Sports Conglomerate loses four points, dropping from $12 to $8, it would have experienced a 33% drop in the share price. This decline is dramatically different from a four-point drop experienced by a company like Cory's Tequila Co., which is trading at $104.
Points and Indexes
Points are not just used when discussing individual stocks; they're also often employed to refer to short-term moves in equity indexes, as in "the Dow Jones Industrial Average gained 20 points today" or "the S&P 500 is down 100 points for the week." Because these indexes are dealing with companies that are worth billions of dollars, points work as a kind of shorthand to indicate changes in the collective value.
What Is the Dow Jones Industrial Index?
The Dow Jones Industrial Index is a list (or index) of companies considered to be good indicators of the stock market's overall strength. Simply put, these companies are a barometer of the market—when they do well, the economy tends to do well, and vice versa.
Changes to the Index Over Time
The index grew to 30 components in 1928 and has changed components many times since then. 3 The first change came just three months after the index was launched. 4 In its first few years until the Great Depression, there were many changes to its components. In 1932, eight stocks within the Dow were replaced.
How Does the Dow Divisor Work?
To better understand how the Dow changes its value, let’s start at its beginnings. When Dow Jones & Co. first introduced the index in the 1890s, it was a “simple average” of the prices of all constituents.
Assessing the Dow Jones Methodology
No mathematical model is perfect—each comes with its merits and demerits. Price weighting with regular divisor adjustments does enable the Dow to reflect the market sentiments at a broader level, but it does come with a few criticisms. Sudden price increments or reductions in individual stocks can lead to big jumps or drops in DJIA.
What is an underlying asset?
Underlying assets include physical commodities or other financial instruments. Futures contracts detail the quantity of the underlying asset and are standardized to facilitate trading on a futures exchange. Futures can be used for hedging or trade speculation.
What is leverage in futures?
Leverage means that the trader does not need to put up 100% of the contract's value amount when entering into a trade. Instead, the broker would require an initial margin amount, which consists of a fraction of the total contract value.
Can margin investing magnify losses?
As a result, margin investing can amplify gains, but it can also magnify losses. Imagine a trader who has a $5,000 broker account balance and is in a trade for a $50,000 position in crude oil.
