What Are Dow Futures?
If you have ever wondered what dow futures are, you’ve come to the right place. These contracts allow you to make bets on the entire market, and if that market takes off, you can potentially make a huge amount of money. You can bet on how much one stock is going to rise or fall in the next year or the next five years. The Dow Futures market begins trading an hour before the stock market opens.
The Chicago Board of Trade’s Globex is the primary trading venue for Dow futures. Trading is conducted nearly around the clock on business days. You can buy and sell futures contracts as a way to determine how well stocks will perform. If a Dow future is rising, it indicates a positive day for stocks. On the other hand, a falling future means that general sentiment has turned negative and that stock prices are likely to fall.
While you can trade stocks without a brokerage account, you will likely need one to trade the Dow futures. As with other stock market futures, you must have a trading account with a brokerage to participate in the futures market. The fees associated with major brokerages vary, but they generally charge commissions for opening and closing positions. You can compare commission charges and features like data feeds before making a decision. There are many benefits to trading dow futures.