To hold the position, you must have sufficient trading capital in your trading account to cover the maintenance margin level. For the purposes of this exercise, we focus on the September options — which expire on September 18, — on the Diamonds. Purchasing DJX options, instead of buying or selling numerous individual stocks, provides an investor with an additional opportunity to use investment capital elsewhere. A supposition that explains the relationship between principals and agents in business. An exercised call option will result in a long futures position and if you exercise a put option you would have a short futures trade position.

The Dow Jones Industrial Average DJIA is the oldest and probably most recognizable benchmark stock index in the world. The DJIA tracks 30 blue-chip U. As index-based trading generally has increased in popularity in recent years, so too has the popularity of trading DJIA aveage contracts. Trading a stock market index directly is not an option for investors, but DJIA futures contracts provide a derivative instrument that enables individual or institutional traders to make trades based on the direction in which they believe the index will move.

DJIA futures contracts offer traders an easy way to trade the overall U. The futures are popular trading instruments with long-term traders and day dow jones industrial average options trading platforms. DJIA futures contracts are one of the principal financial futures, with an average daily trading volume for the E-mini Dow futures of more thancontracts. One of the key features of futures trading is the tremendous amount of leverage available. However, leverage magnifies both gains and losses.

Compared to the U. These projections can easily be dow jones industrial average options trading platforms by economic data releases in other countries and by the price movements on other major stock markets, such as the Tokyo Stock Exchange TYO or London Stock Exchange LSE. There joness three DJIA futures contract sizes available that offer increasing amounts of leverage. DJIA contracts trade quarterly, with nearly all the trading volume taking place in the nearest expiration month.

Traders can easily roll over their positions from one quarterly contract platforns the next as the expiration date for the current contract nears. The first step required for trading DJIA futures contracts is to open a trading account with a futures trading brokerage. Futures brokerage houses are registered and regulated separately from stock brokerage firms, although many brokerage firms offer both stock and futures trading. Futures trading is regulated by the Commodity Futures Trading Commission CFTCrather than the Securities and Exchange Commission SEC that oversees stock trading.

Futures trades are charged a commission on each averaage of the trade, when a position is opened and when it is closed. Total trading fees include commission, National Futures Association NFA fees and exchange fees. Key considerations in choosing a broker are the ease and efficiency of the trading platforms dw, commission optiona, customer service and extra features offered, such as news and data feeds, analytical tools and charting. After selecting a broker and depositing funds into a trading account, averaeg next step is to download the broker's trading platform and familiarize yourself with it.

You don't want to get caught in a rapidly moving, volatile market, attempting to make quick trading decisions and order placements, and be frustrated by the inability to act quickly because you haven't become proficient in operating your trading software. Check out the trading platform and all its features thoroughly so you can access helpful trading tools, such as chart analytics, trading data and the opportunity to test out various trading strategies through a trade simulator.

Once you are familiar with your trading platform, select your trading strategy and test it using a demo or trade simulator account. Only begin actual live trading with real money after you have arrived at a strategy that is consistently profitable in simulated trading. This is an even more important consideration when trading with highly leveraged investments. Some traders prefer to execute their own chosen trading strategies manually.

Others prefer to subscribe to trade signal services or utilize trading robots that automatically execute trades. In futures trading, a trader can either buy long or sell short with equal ease. Futures trading is not burdened with the same short selling regulations as stock trading. Buy the DJIA futures if you expect day trading options seminar goodie index value to go up; sell short if you expect the index value to decline.

Take a trading position in the futures contract trading month you want to trade, most likely the contract trading month with the closest expiration date, as that will be the most heavily traded and the most liquid contract. When you open a position, the broker will set aside the required initial margin amount per contract. To hold the position, you must have sufficient trading capital in your trading account to cover the maintenance margin level. The maintenance margin amount is lower than the initial margin requirement, usually by about one-third.

If your account dips below the required maintenance margin level, then you will receive a averahe call from your brokerage that requires you to liquidate trade positions or jomes additional funds sufficient to bring the account back up to the initial margin requirement. Margin calls generally must be met prior to the opening of regular hours trading the following day.

Close an open trade simply by entering an opposite order. For example, if you opened the trade by buying five E-mini DJIA contracts, then you avetage close the trade by selling five E-mini DJIA contracts with the same futures contract expiration date. It is also possible to close out just part of a trade position if you have more than one contract; for example, selling three of five contracts originally bought, leaving a position of two contracts open.

Term Of The Day A regulation implemented on Jan. Tour Legendary Investor Jack Bogle's Office. Louise Yamada on Evolution of Technical Analysis. Financial Advisors Sophisticated content for financial advisors around investment strategies, industry trends, and advisor education. How to Trade Dow Jones Future Contracts. Maverick November 4, — AM EST. Increased Trading Hours and Liquidity. DJIA Futures Contract Specifications. There are also options on DJIA futures contracts available for trading.

Opening a Trading Account. Learning How to Use the Trading Platform. Selecting a Trading Strategy. Opening and Closing Trades. Related Articles The birth of one of the oldest and most famous stock indexes in the world. Learn strategies for investing in this price-weighted index and how to interpret its movements. Learn about the performance of the Dow Jones Industrial Averages DJIA through the decades.

The forex market is tading the only way for investors and traders to participate in foreign exchange. Every morning before North American stock exchanges begin trading, TV programs and websites providing financial information Hot Definitions A regulation implemented on Jan. A supposition that explains the relationship between principals and agents in business. Agency theory is concerned with resolving A short-term debt obligation backed by the U.

T-bills are sold in denominations A statistical measure of change in an economy or a securities market. In the case of financial markets, an index is a hypothetical Return on market value of equity ROME is a comparative measure typically used by analysts to identify companies that generate The majority shareholder is often the founder No thanks, I prefer not making money.

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Trade Dow Jones Industrial Average Index and are not the levels of any other platform or liquidity provider or Binary options trading involves. How To Buy Options On the Dow Jones level of the Dow Jones Industrial Average, trading the DIA option trading. We demonstrate how to buy options on the. Dow jones industrial average stock market index - automated software forex trading Not make output himself hereupon the show. Binary Options Trading Platform.