Trading the Dow without any spread.

[Naz]

I've recently traded the Dow a few times using the "Diamonds," with direct access making use of my level 2 screen.I thought anyone who trades the Dow on a regular basis might like to look at the kind of liquidity there is and how tight the spread is.

 

[mercury7]

diamonds

Would appreciate it if you could elaborateNaz
ie What is "diamonds"

What kind of money are we talking about to get involved with this type of trading.

What are the benefits, ie spreads,margins etc.

In short,apart from myself I am sure there are others who are not au fait with this trading,and what it is all about.
Thanks
Kevin

 

[JonnyT]

Diamonds are the Dow index tracking stock symbol DIA

Futures give a higher leverage so you will need serious money to day trade these stocks on 4-1 leverage.

Though I guess if you have the cash and can avoid costs its got to be a good thing.

JonnyT

 

[boy]

mercury,

Diamonds (DIA) trade like an individual stock but represent the 30 stocks in the Dow Jones Industrial Average; in other words, trading DIA is like trading a basket of the 30 Dow stocks.

 

[Naz]

I think the diamonds question has been answered.If you want cheaper stocks to trade with no spread then there are always stocks like Intel.Accounts can be opened with 4/1 margin, minimum $2000,and you can do as many trades as you want every day.

With these type of accounts you can also trade NTES,SOHU,SINA the chinese internet stocks which at the moment are just red hot and a real day traders delight.4,200% rise in under 12 months and still going!

Attached is print of Intel showing how tight the spread is.

 

[riddle]

Naz,

My level2 screen won't give me anything for DIA, or any other amex or nyse stock. It only works for the nasdaq. So what are you looking at? Is this the 'open book', or what?
Steve

 

[Naz]

Steve, i'll reply to you by e mail.