E-mini Dow ($5) Futures and Options
CME E-mini Dow $5 Futures and Options, ticker symbol YM, represent one of the most efficient and cost-effective ways to gain market exposure to the Dow Jones Industrial Average.
The Dow Jones Industrial Average is a price-weighted index that tracks 30 of the largest companies in leading sectors of the U.S. economy, and, like the S&P 500, serves as an indicator of the health of the U.S. stock market. The E-mini Dow $5 futures contract allows you to gain exposure to all 30 Dow-listed companies by trading a single contract.
The Contract
E-mini Dow futures trades electronically nearly 24 hours a day, six days a week, and is a more capital-efficient method of trading the index than using an ETF, allowing for short positions without stock loans and variable fees. Futures contracts expire quarterly, with a contract size of five times the DJIA, and a minimum tick value of $5.
E-mini Dow options, which expire monthly, provide even more opportunities, allowing flexibility in managing existing option positions, targeted trading based on market movement, and the ability to trade high impact events.
Trading the Contract
E-mini Dow futures allow you to hedge your macro exposure or capitalize on anticipated movement in the DJIA Index, especially around major market-moving events. Some data releases with special importance to the E-mini Dow market include indicators of U.S. economic health and inflation, as well as quarterly earnings reports of Dow-listed companies.
