Why Dow Cash

[FTSE Beater]

Hi all.

A thought came to me yesterday, which is, why are people trading the Dow Cash by spreadbetting. (don't worry this isn't going to be another "I Hate Spreabetters" thread)

My thinking is that SB's base their cash prices on the futures markets, so why not trade the Daily Futures and not the Cash. There will be different support and resistance points, but surely it can be traded in the same way.

Apologises in advance if I have missed something obvious.

 

[clin]

simply the spread is tighter.

 

[FTSE Beater]

Hi Clin

simply the spread is tighter.

....but isn't the bias worse than the bit you save on the spread

 

[JonnyT]

My answer is simple, don't spreadbet use the futures...

 

[options]

I asked IB a few weeks back if they did the Dow cash.

They replied: 'No one trades the Dow cash market'.


Options.

 

[Miki]

A few under funded traders play with e-mini Dow ($2 and $5).

Low liquidity - but good for trends.

 

[clin]

Hi ! ftse beater

quote: but isn't the bias worse than the bit you save on the spread

The movement of the Dow cash follow the Dow futures not the underlying cash value.

If you've a real time futures feed you will find most of the time SB
prices do match.

If not then it's an arbitrage opportunity.

 

[FTSE Beater]

Thanks Clin - all is clear now