How to convert Dow Future to Dow opening number?

Discussion in 'Trading' started by Happy Hopping, Dec 10, 2008.

  1. If the Dow Future is down 100 points, is there a way to compute the Dow opening from the future?

    Say Dow closed at 8500

    Now Dow Future is down 100 points steady 1/2 hr. before the market open.

    What would be Dow's opening?
     
  2. How long have you been doing this? Ever consider learning the basics?

    Under normal conditions and plus/minus a couple of ticks:

    Cash Index = Futures Price - Premium

    Premium info and more at www.indexarb.com .
     
  3. I don't go to those fly-by-night web sites. I've seen them before many times. They lobby people to do whatever, and they get out before others get out. Those people has their own agenda when they post those info, they couldn't do it just for fun
     
  4. Indexarb isn't a fly by night sight. I've been using their freely published numbers daily for many years to calculate estimated cash opening price.

    The above poster is correct, it's cash=futures-premium.
     
  5. Did it ever occur to you that this person is trying to learn the basics? This site is also an educational site, and sometimes new folks post questions that you might think are silly or stupid. If you're unable to help without being snooty, then don't help. Simply pass over the topic.

    Every one of us was new at one point in time.
     
  6. See this: http://en.wikipedia.org/wiki/Forward_price
     
  7. In all fairness, if the OP was trying to learn, they would have used the Search button. It's not like the questions hasn't been asked-and-answered several times before.

    On the other hand if the OP is trying to learn and was too lazy to search the forum themselves, then they will fail in all things that need to be worked for.
     
  8. Then they will fail. The point is that while ET is a place for "elite traders" it is also an educational point. Sometimes a person doesn't know something and they shouldn't be afraid to ask for fear of being bashed over the head as "stupid".
     
  9. Printed close+virtual points+futures gain=open price
     
  10. Alright, let use the above e.g.

    If Dow future = -100

    And premium is -35.17

    Then obviously, Dow opening = -64.83

    So who's to say http://www.indexarb.com/
    is the canon source for Premium value? Who's to say they are accurate?

    And an even better question is, since these no. are so important, shouldn't we see the canon source web site like yahoo finance or cnn.money.com or marketwatch.com listing the above daily premium value?
     
    #10     Dec 11, 2008