There are many reasons why someone interested in financial transactions and/or speculation must choose to trade Index Futures instead of other markets, such as more advanced Exchange.
One of the main reasons is that the Dow Emini Futures are less prone to manipulation by becoming an index based on average. Forward Dow follows the mother index (DJIA) Dow Jones Industrial Average very closely and hence the reason for this is the name and called the Mini Dow or Emini Dow.
The Dow Jones Industrial Average (DJIA) is composed of 30 stocks, which include some of the biggest companies in the USA, Microsoft, Intel, IBM and Cisco Systems that some of them. The price movement of the DJIA is a simple average of those reserves and is reflected in the emini futures market.
The Dow Emini, symbol: (YM) trades on the Chicago Board of trade (CBOT), also known as Chicago Yen Exchange (CME). Each contract traded warrants only $ 5 per item movement which gives the opportunity to get their feet wet with $ 500 margin requirements as somewhat the novice trader.
Because Dow Emini trades in a computerised system of Exchange, your orders get routed quickly and supplemented almost instantaneously on a ' first first served basis ", this provides an opportunity to trade fair surface all market participants.
Emini Futures trading also allows for orders to be placed inside the spread (bid/Ask), this allows the trader to store the spread should get Filled order, a great tool in itself to scalpers. When it comes to trading in futures, the broker seem generally best interests of their client. A Futures broker makes only a small Commission at the end when orders are routed successfully in Exchange and complement or matched.
The Dow Emini Futures, in recent years it has become increasingly popular due to it's one of the best bargains around, for beginners and experienced traders alike. Allows traders to start small and can become a professional as they gain more experience.
Index Futures trading is also one of the safest vehicles to speculate in due to strict regulations SEC and NFA, brokers who are obliged to comply with.
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