E-Mini Dow

Mini Sized DowSM Futures

The Chicago Board of Trade (CBOT) has developed a mini-sized DowSM futures contract based on the Dow Jones Industrial Average (DJIASM). This contract represents a new opportunity for individual investors to trade futures on the world's best known stock index.

Remember, the risk of loss exists with all futures trading, which includes e-mini futures as well. Only risk capital should be invested.

The new mini-sized DowSM futures contract allows you to:

  • Potentially capitalize on profit opportunities by taking a position based on your expectations concerning the DJIASM -- weather you are bullish or bearish (there is no up-tick rule)
  • Potentially maximize price exposure -- minimize cost
  • potentially preserve your investment value during times of market turmoil
  • Short the market more easily than with actual stocks
  • Gain online access to round-the-clock trading opportunities

With this contract, you can participate in a market move without having to buy or sell all 30 DJIASM stocks. If you believe the market will go up, you can buy a mini-sized DowSM futures contract. If you believe that the market will go down, you may sell a mini-sized DowSM futures contract.

The value of a mini-sized Dow futures contract equals the current DJIA level times a $5 multiplier. Suppose the DJIASM level is currently 10250. Since the mini-sized DowSM futures has a multiplier of $5, holding a mini-sized Dow futures contract at this level gives you market exposure equivalent to a $51,240. Protecting a $102,500 stock portfolio would require a hedge in which you sell two mini-sized Dow futures contracts. The mini-sized DowSM futures contracts are cash settled; there is no delivery of the 30 DJIA stocks. For example, if you held a position in the mini-sized DowSM futures contract until its expiration, you would simply receive (or pay) the final gains (or losses) on the contract based on the difference between the entry price and final settlement price plus commissions and fees.

Contract Size

Five ($5.00) times the Dow Jones Industrial Average Index. The DJIA is a price-weighted index of thirty (30) of the largest, most liquid U.S. stocks.

Final Settlement Day

The third Friday of the contract month.

Settlement

Cash settlement on the final settlement day. The final settlement price is $5 times a Special Opening quotation of the index.

Tick Size

Minimum price fluctuation is one point ($5.00 per contract).

Price Quote

One point (1) equals $5.00 per contract.

Contract Months

Mar, Jun, Sep, Dec Four months listed at all times.

Last Trading Day

The trading day preceding the final settlement day.

Trading Hours

Electronic Trading: 7:15 p.m. to 4:00 p.m., Central Time, Sunday - Friday.
Trading in expiring contracts closes at 3:15 p.m. Central Time on the last trading day.

Ticker Symbols

Electronic: YM

Daily Price Limit

Successive 10%, 20%, and 30% limits.

Position Limits

50,000 contracts in all contract months (combined limit for DJIA futures and options and mini-sized Dow futures $5 multiplier)

Trading futures and options involves substantial risk of loss and is not suitable for all investors.