The cost is based on whatever your brokers fee structure is and the amount of shares traded.It may vary from $1-$15.
Its a tracking stock with lots of liquidity and be traded from any broker that offers it.
All Nasdaq level 2 direct access traders just enter the code DIA on their screen and there it is.I run the Dow 30 chart in the background and if i see any entry i just type in the code and hit the ask.The fill is instant always.The liquidity is so good that its just a dream to manage your position.If i was a DOW trader its how i would trade the stock because of the money you save as against using a sb company.Its yet another edge a level 2 trader has.
The DIA is the DOW tracking stock.Whatever the DOW is doing the DIA will almost mirror it.If you see a move on the DOW just get in on the DIA and it will move the same way.Its one of the fastest ways to trade the DOW without any shenanigans that you get from the sb companies.
Naz, I know about ETFs, but i am more interested in trading cash indices and not something that replicates them (DIA,SPY etc). Therefore I am looking for the companies that provide that kind of services. I have already found one (see my posts above). Can you recommend any other ones?
you can probably find a company somwhere that will trade anything -but anyone that lets you trade the cash index for real is either gonna take you to the cleaners on costs - or someone is going to take that company to hedge hell and blow them out - either way you will lose out
trading is hard enough - stick with real companies and real trading opportunities - whilst the dia and spy are only low leverage futures contracts - learn to trade them or the futures - no point trying to trade the cash unless you are an arber
there are people who would offer the cash index for real - but i am sure they will get stung real bad doing that or just cream off so much money to cover themselves that you woudl not want to trade with them
but if someone dives in - let us know how you get on
Correct me if I am wrong...Perhaps, I do not understand something...But what is wrong with trading in cash indices? You are telling me that a cash index follows the futures, but how that can be? I thought that Dow and S&P did not follow anything and that they float on their own...Can anyone please explain? And also, why people who offer such kind of trading will necessarily take me to the cleaners? The issue is rather sensitive for me, because I have been studying index behaviour for quite a while, which is why I want to trade in cash indices, not ETFs
sometimes cash follows futures - sometimes futures follow cash - etfs will follow a liquid futures contract - the dow is gonna be a bit different due to illiquidiyy in the contract that will produce aberations
a cash index is not a tradeable contract - its a value arrived at by a calculaton based on the stocks that make up that index -to repilicate it - the liquidity of all the underlying stocks would haev to be such that you could at the same intstant - buy them all - in exactly the same ratio
you can set up easier systems do this by using a fewer number of stocks which in general would represent the index - but all sorts of other issues come in
hence etfs and futures appeared - but by logic these will either follow or lead the cash as sentiment of investors change
the fact you chose to look at cash indicies may in part give an indication of your knowledge of trading - and since knowledge is acquired over time - this maybe a time to step back and ask yourself why you feel as a learner that just because you chose to study cash indicies - why do you feel that that was the right thing to do?
in trading - try to see what the professionals are doing - and then choose the optons open to you - thats how you make money
...But what is wrong with trading in cash indices? You are telling me that a cash index follows the futures, but how that can be? I thought that Dow and S&P did not follow anything and that they float on their own.........I have been studying index behaviour for quite a while.....