| 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.
|
|
| 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.
Content taken from the
cbot.com
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