Investing in Dow Jones Futures
If you’re interested in investing, you may want to consider a Dow Jones futures contract. This type of contract allows investors to hedge against the potential value of an asset, while speculating on its value.
Price limit
Dow Jones futures are derivative contracts based on the value of the Dow Jones Industrial Average (DJIA). They are traded on the Chicago Board of Trade (CBOT).
The DJIA is comprised of 30 companies. The futures contract closely tracks the index value during regular U.S. stock market trading hours.
A Dow Jones futures price limit applies during normal trading hours. However, there are exceptions. For example, when the index has lost 5% of its value, the limit will be triggered. This causes a sudden increase in the value of the index.
When the index goes under a limit, a stop order will be placed on outstanding contracts. In addition, cash settlement will be …
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