How to convert Dow Future to Dow opening number?

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

  1. Who's to say that you can't calculate it yourself?
    http://www.indexarb.com/fairValueDecomposition.html

    The sites you've listed aren't geared to 'traders'. 'Fair value' is not meaningful to 'investors'. Hence the absence.
     
    #11     Dec 11, 2008
  2. Mercor

    Mercor

    Premium is a time factor, as the contract month matures the premium fair value works it way to par with the underlining contract. This convergence is steady, but ocasionally may make a sharp adustment if there is a sharp move in futures after the cash closes.

    To be simple if the Dow futures are up 100pts the furtures will be up the same amount.
     
    #12     Dec 11, 2008
  3. lescor

    lescor

    No one said they were the source for fair value. There are other sites that publish numbers, or you can calculate your own. They will vary because not everyone borrows money at the same rate and there is an interest rate component in the calculation.

    And who said the fair value number is so important? 99% of the public and 95% of traders probably pay no attention to it or know what it even means.
     
    #13     Dec 11, 2008
  4. Thank you Ivan. I get so sick of seeing that behavior. How does the site grow w/o new people? We owe Baron that much.
     
    #14     Dec 11, 2008