1/13/2024 0 Comments Dow jones futures right now![]() ![]() If the average rose to 900, the portfolio purchaser would make $5,000, a profit of 25 percent on the cash invested. With the Dow at 800, purchasing the portfolio would require a $40,000 investment, $20,000 in cash. Buying the futures contract would require only a $1,500 down payment under the margin provisions proposed by the Kansas City BOard of Trade, providing a tremendous leverage advantage to the futures investor. ![]() Vernon, executive vice president of the Kansas City Board of Trade, contends the Industrial Average Futures would be used just as other futures contracts are - by hedgers who want to protect themselves against changes in the price of commodities and speculators who think the hedges are wrong.īank trust departments, investment bankers or anyone else with plans to buy or sell stock at some future date are potential hedgers in the industrial average futures, the Kansas City official contends.Īn investor expecting the Dow average to increase by December could buy a portfolio of shares of each of the 30 stocks included in the index, or instead could buy a December Dow futures contract.īuying the stock would require the investor to put up 50 percent of the purchase price under the stock purchase margin requirements set by the Federal Reserve Board. At Friday's close of 838.10, the Dow futures contract would be worth $41,905. A $1 change on the average would mean a $50 change on the futures contract the futures would be quoted at the Dow index price to make the investment easy to understand. Previously an obscure marketplace for trading futures contracts in hard dry red winter wheat, the Kansas City Board is trying to cash in on the booming futures business by creating what is potentially the most popular future of them all, one based on the Dow, symbol of the stock market.Ĭalled the 30 Selected Industrial Stock Average future - because Dow Jones will not allow its name to be linked to it - the plan would let investors speculate on the future level of the popular stock market index just as they now speculate on future prices of corn, cocoa and other commodities.TKansas City's contract would be based on the expected level of the Dow average in March, June, September and December, and would be valued at 50 times the daily Dow quote. ![]() Hardly taken seriously when it was proposed by the Kansas City Board of Trade a few months ago, the plan has become so appealing and so controversial that the Commodity Futures Trading Commission has scheduled two days of hearings on it Wednesday and Thursday. The Securities and Exchange Commission, the Federal Reserve Board and, perhaps most importantly, Dow Jones & Co., are aggressively attempting to squelch the plan. Massive opposition is being mustered against what was once considered a laughable proposal to let investors speculate on the Dow Jones average. FX Publications Inc is a subsidiary of IG US Holdings, Inc (a company registered in Delaware under number 4456365).Sexier than sowbellies, simpler than soybeans and as speculative as anything Atlantic City or Las Vegas has to offer: a futures contract based on the Dow Jones average of 30 industrial stocks. Registered Address: 251 Little Falls Drive, Wilmington, DE 19808. FXP is not responsible for any trading decisions taken by persons not intended to view this material. Any examples given are provided for illustrative purposes only and no representation is being made that any person will, or is likely to, achieve profits or losses similar to those examples. It is not a solicitation or a recommendation to trade derivatives contracts or securities and should not be construed or interpreted as financial advice. This information is made available for informational purposes only. Information presented by FXP should be construed as market commentary, merely observing economical, political and market conditions. residents or individuals domiciled in the U.S. Any and all information provided by FXP is not intended for use by U.S. We recommend that you seek independent advice and ensure you fully understand the risks involved before trading.įX Publications Inc., abbreviated herein as FXP, (d.b.a DailyFX) is no longer a registered Introducing Broker with the Commodity Futures Trading Commission and is no longer a Member of the National Futures Association in the U.S. We advise you to carefully consider whether trading is appropriate for you based on your personal circumstances. Leveraged trading in foreign currency or off-exchange products on margin carries significant risk and may not be suitable for all investors. ![]()
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