Have you ever traded Dow Futures? Dow futures are futures contracts based on the famous Dow Jones Industrial Average (DJIA). Dow Index is a price weighted index of 30 blue chip stocks listed on the New York Stock Exchange (NYSE). Dow Index is widely quoted on financial channels like CNBC and Bloomberg as a barometer of market sentiment on NYSE. Knowing this incredible Dow Futures secret can make you rich.

Now, almost all the stock exchanges have a stock index related to each one of them. Trading stock index futures contracts have become popular with the day traders in the last decade. This way a trader can trade against the market instead of trading a single stock or a few stocks. Stock indexes mirror the market sentiment and a trader by trading these stock index futures contracts can profit from the volatility in the stock market.

There is another adavantage to trading stock index futures or for that matter any other futures contract. The uptick rule does not apply in the futures market. So a trader can as easily go short as he or she can go long without worrying about the uptick that is a headache for the stock traders.

Now, Dow Futures are traded on Chicago Board of Trade (CBOT). Each point on the Dow Index is multiplied by $10 to find the market price of the Dow Futures contract. So if the Dow Index is at 9000 points, the market value of the Dow Futures contract will be $90,000. Many retail traders are unable to afford this much amount to purchase a single contract.

Keeping this in view, CBOT created another Dow Futures contract known as the Dow E-Mini Futures contract. The market value of Dow E-Mini contract is calculated by mutliplying the Dow Index with $5. So in the above case where the Dow Index was at 9000 points, the value of Dow E-Mini futures contract would be $45,000 making it more affordable to small traders.

Dow futures and most other futures contract get traded electronically on the GLOBEX platform. There are futures contracts on S&P 500 Index as well as NASDAQ Stock Index as well. Many day traders trade all three of them. Some interesting happens almost every few days for many years to the Dow Index futures. If you know this hidden secret that is not known to many, you can make incredible profits. The best method to trade Dow Index is to trade Dow Futures. Don’t miss to know this Dow Futures never lose trade secret!