DJIA (Dow Jones Industrial Average) - an index, calculated on the courses listed shares of 30 most "blue chip" U.S. .. Over the past 100 years, he is the oldest continuously operating U.S. market index. List of companies can vary, the number of companies listed in 1896 was 12, in 1916 increased to 20, and from 1928 to date is 30. The index is called the mean (average), because originally it was calculated as the average stock price. The first value of this index, May 26, 1896 was equal to 40.94. The methodology of computing has undergone some changes. By virtue of the fact that some American companies make stock split (stock split), which increases the number of shares in circulation without increasing their total nominal value, you must reduce the number of companies in the index, to avoid artificially lowering the index. However, the word "average" (average) in the name of the index remained. This index does not include transport companies and companies serving the communal services.
The list of companies whose shares are included in the Dow Jones
ALCOA INC; AMERICAN EXPRESS; BOEING CO; CITIGROUP INC; CATERPILLAR INC; DU PONT (EI); DISNEY (WALT) CO; EASTMAN KODAK; GENERAL ELECTRIC; GENERAL MOTORS CORP; HOME DEPOT INC; HONEYWELL INTERNATIONAL; HEWLETT-PACKARD; IBM; INTERNATIONAL PAPER CO; INTEL CORP; JOHNSON &JOHNSON; JP MORGAN CHASE; COCA-COLA CO; MCDONALDS CORP; 3M CO; ALTRIA GROUP INC; MERCK & CO; MICROSOFT CORP; PROCTER & GAMBLE; SBC COMMUNICATIONS Inc; AT & T CORP; UNITED TECH CORP; WAL-MART STORES; EXXON MOBIL CORP
A futures contract is a model agreement for purchase / sale of goods according to specifications. Parameters of the contract are established exchanges. The specification indicates the number and variety of goods, time and place of delivery. Price of delivery is determined in the process of exchange trading.
Futures contracts on stock index Dow Jones (stock index futures) based on stock index Dow Jones. Traded on the Chicago Mercantile Exchange (CBOT) in the pit (1 tick - $ 10) and electronically on eCBOT (mini Dow Jones - 1 tick - $ 5).
Futures on the Dow Jones index of interest:
- for speculators, because they have greater liquidity at the time of bidding on the Chicago Mercantile Exchange, and consequently the possibility of a quick profit by trading within the day, and when a positional trade.
- to hedge the investment portfolio, which contains a large number of shares of American companies.
1 tick futures contract on the Dow Jones is 1 point.
In Day average volatility of the futures contract on the Dow Jones ranged from 30 to 150 ticks.
Average volatility of the futures contract on the week the Dow Jones ranged from 100 to 300 ticks.
Volatility of the contract for several months.
