| The
Mini-sized Dow is a new product offered by the
CBOT. The mini is traded like the e-minis
and carries numerous opportunities within both
small and large range days.
For details on
how to trade the Mini-sized Dow, click
here for a flash demonstration and tutorial.
Want to practice?
Try the free trade simulator created by the
CBOT. The trade simulator will allow you to get
a feel for the Mini-sized Dow, without placing
live capital on the line. click
here to get started.
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| CBOT®
Dow Complex: Product Overview |
| Contract |
CBOT®
mini-sized DJIASM Futures
|
CBOT®
DJIA Futures
|
Options
on CBOT® DJIA Futures
|
|
Ticker
Symbols
|
YM
Vendor
Ticker Symbols |
Open Outcry: DJ
Electronic: ZD
Vendor
Ticker Symbols |
Open Outcry: DJC
for calls / DJP for puts,
Electronic: OZD
Vendor
Ticker Symbols |
| Contract
Value |
$5 x DJIA Futures
Price - e.g. $40,000 if DJIA futures price =
8,000 |
$10 x DJIA
Futures Price - e.g. $80,000 if DJIA futures
price = 8,000 |
Same as CBOT®
DJIA Futures |
|
Price
Quotations
Option Strike
Price Intervals
|
Price quotation
in full index points, e.g. 8,502
Final settlement price in hundredths of index
points, e.g. 8,502.03
|
Premium quoted
with implicit $100 multiplier, e.g.
34.64=$3,464, or quoted as 3,464=$3,464.
Strike Price
Intervals: Twenty 100 index point ($1,000)
intervals up and down from futures price plus
twenty additional 200 point intervals above and
below the highest and lowest 100 point
intervals.
|
| Minimum
Fluctuation |
1 index point = $5 |
1 index point =
$10 |
.5 index points =
$5
If $100 multiplier used quoted as .05 |
| Contract
Months |
(March, June,
September and December) Four nearest months
in March quarterly cycle listed at all
times. |
(March, June,
September and December) Four nearest months
in March quarterly cycle and two additional
Decembers listed at all times. |
Same as futures
quarterly cycle plus 2 to 3 nearest months
("serial" months) such that four
consecutive contract months listed |
Trading
Hours
(U.S. Central Time) |
Electronic:
8:15 p.m. - 4:00 p.m.
Sun-Fri |
Open Auction:
7:20 am - 3:15 pm Mon-Fri
Electronic:
8:15 pm - 7:00 am Sun-Fri |
Open Auction:
7:20 am - 3:15 pm Mon-Fri
Electronic:
8:15 pm - 7:00 am Sun-Fri |
Price
Limits and Trading Halts
|
Current
Price Limits and Trading Halts
(Circuit-Breakers): 10% = 950; 20% = 1,900; 30%
= 2,850
Detailed
Price Limit & Trading Halt Information |
Limits and trading
halts are the same as for futures |
| Position
Limits |
Net
long/short position in all contract months
combined of 50,000 contracts with a
reportable limit of 100 contracts.
One CBOT® DJIA futures contract
deemed equivalent to two CBOT®
mini-sized DJIA futures contracts. |
Net equivalent
futures position of 50,000 contracts with a
reportable limit of 25 contracts |
| Margins |
Initial Margin:
$2,700
Maintenance and Hedge Margin: $2,000
Detailed
Margin information |
Initial Margin:
$5,400
Maintenance and Hedge Margin: $4,000
Detailed
Margin information |
Margins on options
determined by SPAN (Standard Portfolio Analysis
of Risk) |
| Fungibility |
Full fungibility
allows offset and liquidation of CBOT®
mini-sized DJIA futures positions against
CBOT® DJIA futures held in the same
account, contract month, and year in the
following ratios: 1 CBOT® DJIA
futures contract = 2 mini-sized DJIA futures
contracts.
Written notification
to Board of Trade Clearing Corporation is
required. For more detailed information see
BOTCC Bulletin #193 at www.botcc.com. |
|
| Final
Settlement Day |
3rd
Friday of contract month |
| Last
Day of Trading |
3:15
p.m. (U.S. Central time) on Thursday preceding
Final Settlement Day |
Quarterly
expirations: same as futures
Serial expirations: close of third Friday of
contract month |
| Final
Settlement Price |
Special
Opening Quotation (SOQ) of DJIA calculated from
opening prices of Dow stocks on final settlement
day.
September02 SOQ = 7976.38
Detailed
SOQ (settlement) information |
Options are
American style
Serial Options or non-expiring quarterly options
exercise into the underlying futures
contract. Exercise of expiring quarterly options
results in cash settlement based on the SOQ |
Exchange
for Physicals
EFPs |
Diamonds®
and suitable baskets of DJIA stocks are eligible
EFP assets for CBOT® DJIA and CBOT®
DJIA mini-sized futures contracts. |
|
| Dow
Divisor |
DJIA =
Sum of 30 Dow stock share prices / Dow divisor
Current Dow Divisor = 0.14418073
Detailed
Dow Divisor information |
|
| Fair
Value Calculation |
Fair
value is the theoretical price of CBOT®
DJIA futures contract based on interest rates,
the dividend yield, and the current price of the
DJIA.
Current
fair value table and detailed information |
|
| Contract |
CBOT®
mini-sized DJIA Futures
|
CBOT®
DJIA Futures
|
Options on
CBOT® DJIA Futures |
Am
I buying or selling all 30 stocks in the DJIASM
when I trade Dow futures? [top]
No, you're buying (or
selling) a price-weighted index representing 30 of the
most liquid US blue-chip stocks. You do not end up
owning stocks. Rather, trading an index futures contract
means you can benefit from the profit potential in
multiple stocks and sectors with just one trade (and one
commission).
Can
I sell short? [top]
Yes. One of the
advantages of trading futures is its inherent
flexibility. You can just as easily s ell as buy –
without restrictions or added costs.
What
is a multiplier? [top]
The CBOT®
mini-sized DowSM, launched in April 2002, is
traded 100% electronically and has a contract value of
$5 x the DJIA index level. The multiplier, $5, is the
dollar amount that is used to define a trading unit of
one Dow futures contract. As the level of the DJIA
changes during the day, the multiplier remains constant,
so it is easy to calculate your market exposure. For
instance, if the DJIA is trading at 9000, then the
contract value is $45,000, or 9000 x $5.
How
does the CBOT® mini-sized Dow futures price
relate to the DJIA that I see quoted daily? [top]
The CBOT®
mini-sized Dow futures contract is an indicator of where
the "cash" market is going. You can trade CBOT®
mini-sized Dow futures before and after the NYSE and
Nasdaq markets open and close, virtually 24 hours a day.
Intra-day, the futures price is very closely related to
the current DJIA index level but may lead or lag price
discovery for the cash index.
What
are the trading hours for Dow Futures? [top]
CBOT®
mini-sized Dow, exchange symbol YM, traded
electronically, Sun – Fri, 8:15pm – 4pm CST.
DJIA futures, exchange
symbol DJ, traded open outcry, Mon-Fri, 7:20am –
3:15pm CST. DJIA Options symbol DJC/DJP, same trading
hours.
DJIA futures, exchange
symbol ZD, traded electronically, Sun-Fri, 8:15pm –
7am CST. DJIA Options symbol OZD, same trading hours.
Where
can I get free CBOT mini-sized Dow level 2 quotes? [top]
The Dow Complex web site offers
free level 2 quotes and intra-day charts for the CBOT
mini-sized Dow. Click here to access http://www.cbot.com/cbot/dow/fivequotes
.
What
are electronic market makers (EMMs) and what is their
role in the CBOT mini-sized Dow? [top]
EMMs help to provide
liquidity for new contracts. They have the same goal as
all Dow traders – to see that volume grows by
providing a competitive, liquid market - and are
committed to an active trading role to make this happen.
EMMs provide a more stable trading environment and
guarantee ease of entry and exit into the market. EMMs
do not receive preference execution – all market
participants are treated anonymously and fairly in the
electronic matching engine.
Where
can I get daily and historical volume information for
the CBOT mini-sized Dow? [top]
In the "About Dow
Futures" section of www.cbot.com/dow.
For an automated update of weekly volume, as well as
moving average statistics, subscribe to the online Dow
newsletter, also available at www.cbot.com/dow.
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