Mini Sized Dow YM Advantages

Discussion in 'Index Futures' started by Spectra, Jan 11, 2007.

  1. We get asked this question a lot on our futures trading site “Why do you guys favor trading the Dow E-mini YM contract as opposed to the S&P or Russel?” There are a few great reasons why we suggest traders start out by focusing on the Dow E-Mini YM:CBOT

    1. The Dow Jones Industrial Average (YM) is the most widely watched index of large-cap US stocks followed by the S&P 500 (ES). It is considered to be a bellwether for the US economy.

    2. Less slippage. If you get a bad fill on the YM it will only cost you $5/per contract. A bad fill on the ES will cost you $12.50 per contract. This is the equivalent of your broker calling telling you hes charging you an additional $7.50 per market trade. The smaller tick increments give you more places to place buy/sell orders. This is a grand advantage over trading the E-mini S&P ES and will save you a lot of money over the span of your career. By trading the YM mini-sized Dow, a trader is essentially shrinking the spread.

    3. Margin requirements are less on the YM, giving you more leverage

    4. The ES/ER/AB tend to be overly volatile at times. Sudden ramps that pierce through stops are not uncommon. Newer traders can not handle this action.

    5. Often times the ES can be used as a leading indicator to foreshadow moves in the YM. We take advantage of this in our trigger system to increase our odds.

    P.S. First post here under our new account at Elite Trader. A lot of our users come from EliteTrader. We'll be posting free blogs and information from Alex every so often.
  2. r-in


    Ok, I'll be the fool, but who are you and who is Alex?
  3. Hey r-in. There was a problem with the account options on the forum settings. The message signature/address should of posted to the bottom of a message. One of the Elite Trader admins is fixing that now. The messages posted will be very blunt, upfront and honest. You wont have to 'dig' for information like you just did! (obviously) Sorry, like I said. First post, account was not totally setup yet. Anyway to answer your question, I'm one of the users over at and Alex is the head trader/guru of the site.

    Ack! CBOT Trading just got halted as soon as I wrote this post. Bad omen. hehe
  4. r-in


    Great thanks!