Any Mini Dow Traders?

Originally posted by ADX_trader


The question is why is DOW so illiquid. Why SP is so liquid? It is liquid so many people play it and it becomes even more liquid. Why DOW cannot become more liquid?
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Because the SP has been around forever, and the DOW is a relatively new contract. People got used to using the SP and have just stuck to that. The CBOT is working very hard to bring public interest and participation to the contract though with things such as lower commissions and some rebating as well as a market maker program.

Brandon
 
I play it almost everyday. I try to get bigger moves from it, well bigger for me since I scalp the es for 2-5. At this point you can not try for small moves because of lack of volume. But i don't mind bringing in +50 which is what i target for it. :cool:
 
I don´t think so. www.cbot.com/dow ( new layout )

The CBOT announced a fourth quarter 2002 exchange fee waiver for all participants in Dow Jones stock index products as well as pricing adjustments for 2003. These pricing adjustments play an integral role in the Exchange's ongoing efforts to develop the Dow Jones product complex. Volume in the complex year to date is up more than 43% from 2001 levels.

Details at www.cbot.com/cbot/dow/cont_detail/0,2614,4+8724,00.html
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For you mini Dow guys.

The 500x contract had a record volume week. In fact 20k traded Wens.

The 200x contract will be discontinued! Dec 2002 is the last expiration.
 
CBOT didn't want to step on the toes of it's members who trade in the pits. It has very little to do with which is better S&P or Dow in my opinion.

When you think about it, an index based on just 30 stocks has all kinds of trading possibilites. Especially for a stock trader.

Woulda coulda shoulda, It should have been traded completley electronically from the start. But there was no one at the CBOT to stand up and say, send your orders in directly instead of giving them to our pit traders. So now the CBOT is in the pits.
 
Originally posted by Pabst
The 500x contract had a record volume week. In fact 20k traded Wens.
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Wow! A 500x contract! One of those must be worth $800,000. I wonder what the margin requirement on those might be.
 
I mean you look at SPY and DIA. Sure SPY trades a lot more, but I don't know anyone who looks at DIA and says too bad it can't be traded.

So the fact that many futures traders don't want to throw hard earned into the Dow tells you it is more than just a problem with the index.

When something is bouncing around 50 points at a time, someone is going to make a lot of money, but that someone won't be me. I function in life a lot better as a peaceful grazing ram, than I do as a wolf.
 
Originally posted by StockApprentice

Also, can anyone explain the reason that DIA the DOW tracking stock trades so far above the index price? (15-25pts)
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Last time I checked DIA was trading about 7900 points below the DJIA.
 
But if I was an aggressive trader who likes to stalk his prey, go in for the kill and make them pay, I'd spend a little time each day on the ACE.

Because one thing the Dow has going for it is

"Well, I don't know anything about commodities or indexes, but I have dabbled in stocks, and I saw an add where you can speculate on the Dow Jones Industrial Average for only $10 a point, and that doesn't sound too risky."
 
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