Why is the e-mini dow so thinly traded?

Quote from TheStudent:

Ironically the reverse may be the case.

With the S&P 500, replicators often do not buy and sell all 500 stocks. Instead they might buy and sell a basket of stocks that is less than 500 but tracks the 500 closely enough within risk tolerances. This reduces friction costs(increases profits) and introduces a correlation element that excites replicators as a potential extra source of profits.

So, basket selection provides yet another dimension that stimulates competition.

With the Dow, it's just 30 names, far less room for creative replication. Just follow the receipe and mix the batter.
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i hear your point and others about the dow being just 30 companies but keep in mind. these 30 companies are by far the largest in the world and have by far the highest market share in the world. if you take the russel 2000 or even the nasdaq 100 i'm sure the dow can balance out. the market share of the dow 30 which includes giants such as ibm, hewlett packard, alcoa, exxon chevron and ge trade in the billions of shares every day. this is a huge index and should be getting alot more trader interest. and as ive said its the name that should attract the attention. when i first started this thread i made the point it should at least outperform in open & volume the russel which comprises 2000 stocks but tiny stocks or even the nasdaq emini. i do understand that the s&p is the benchmark and has been the kingpin of volitility for almost 30 years trading the futures. the 500 companies it consists of are large cap so that makes sense. but the what about the case for the nasdaq and russel eminis? even if you add up the calclulations and they come out to be bigger indexs from the share market value of every stock in their respective indexes compared to the emini dow i'm sure they arent 5 fold bigger. yet the russel outperforms the dow emini 5 fold in open interest and volume.
and lets be honest. i have been trading futures and stocks for years now. of course everyone heard of the dow and knows what it is associated with. it's as american as apple pie. it's an index that has traded for over 200 years. if you take the russel, i only heard about this index and found out that you can actually trade it only over the past couple of years. the point is people tend to trade what is most popular. if you look in most stock or mutual fund portfolios you will always find the popular picks like the microsofts, the ge's and the ibm's, all dow stocks. the average investor tends to own these stocks mentioned because they heard of them and they are well known.
why the dow eimini should so terribly lag the other eminis in volume and liquidity to me is a conundrum.
 
Quote from triggertrader:

[why the dow eimini should so terribly lag the other eminis in volume and liquidity to me is a conundrum.
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No native stop limit orders - anyone who enters or exits based on a breakout gets ripped-off with massive slippage.
As a result, the longer term players avoid this instrument and all you have is the scalpers scalping against each other.
 
Quote from erToo:

No native stop limit orders - anyone who enters or exits based on a breakout gets ripped-off with massive slippage.
As a result, the longer term players avoid this instrument and all you have is the scalpers scalping against each other.
More...

i guess the only way to trade it is with limit orders. at least you are garanteed your fill or maybe better.
i have traded this index with stops and have gotten alot of slippage. with market orders its even worse. you always get filled higher than your price when buying and lower when selling. they simply make money between the points and even the bid and ask. slippage is a big rip off i totally agree with you.
 
i do understand that the s&p is the benchmark and has been the kingpin of volatility for almost 30 years trading the futures. the 500 companies it consists of are large cap so that makes sense. but the what about the case for the nasdaq and russel eminis? even if you add up the calculations and they come out to be bigger indexes from the share market value of every stock in their respective indexes compared to the emini dow i'm sure they aren't 5 fold bigger. yet the russel outperforms the dow emini 5 fold in open interest and volume.
and lets be honest. i have been trading futures and stocks for years now. of course everyone heard of the dow and knows what it is associated with. it's as american as apple pie. it's an index that has traded for over 200 years. if you take the russel, i only heard about this index and found out that you can actually trade it only over the past couple of years. the point is people tend to trade what is most popular. if you look in most stock o
why the dow e-imini should so terribly lag the other eminis in volume and liquidity to me is a conundrum. [/B][/QUOTE]

================================
Could mention several other technical things why i prefer ES over YM, but think i will not.

Also i have seen MANY more trading contests for russel1k/2k;
much more than for Dow-mini. So ads do pay.
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The fact many national media likes/promotes DOW more, probably does not help it, probably hurts it, with traders anyway.
And i hope Sam Zell [name zell rhymes with sell];
straightens out chicago TRB,
Pa Prime:cool:
 
Quote from murray t turtle:

i do understand that the s&p is the benchmark and has been the kingpin of volatility for almost 30 years trading the futures. the 500 companies it consists of are large cap so that makes sense. but the what about the case for the nasdaq and russel eminis? even if you add up the calculations and they come out to be bigger indexes from the share market value of every stock in their respective indexes compared to the emini dow i'm sure they aren't 5 fold bigger. yet the russel outperforms the dow emini 5 fold in open interest and volume.
and lets be honest. i have been trading futures and stocks for years now. of course everyone heard of the dow and knows what it is associated with. it's as american as apple pie. it's an index that has traded for over 200 years. if you take the russel, i only heard about this index and found out that you can actually trade it only over the past couple of years. the point is people tend to trade what is most popular. if you look in most stock o
why the dow e-imini should so terribly lag the other eminis in volume and liquidity to me is a conundrum.
More...

================================
Could mention several other technical things why i prefer ES over YM, but think i will not.

Also i have seen MANY more trading contests for russel1k/2k;
much more than for Dow-mini. So ads do pay.
========================================


The fact many national media likes/promotes DOW more, probably does not help it, probably hurts it, with traders anyway.
And i hope Sam Zell [name zell rhymes with sell];
straightens out chicago TRB,
Pa Prime:cool: [/B][/QUOTE]

i just thought of soemthing else. i think the dow emini is the only emini that trades on the CBOT. the rest are the CME. maybe thats why it isnt getting as much attention.
 
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