[dalby]

im not sure what you mean by "increased risk" in re: futures.

the only increased risk is increased leverage.

if you want to trade less than (for example) a 65k (approximately) notional value in the dow, then using DIA's or even DIA single stock futures is the way to go.

100 shares of DIA has 1/5 the notional value of 1 YM contract.

but that is the only "increased risk"

trading 500 shares of DIA has the EXACT same risk as trading 1 YM.

the risk comes (to most traders) from the fact that you can use MUCH MUCH more leverage with futures than stocks (and ETF's trade like stocks).

if you have a 50k account, you can trade (assuming 4:1 intraday margin) 200k notional value with your 50k account using ETF's

if you have a 50k ira, you can trade 50 k notional value using ETF's

but using futures you can trade (depending on your broker) approximately 1.1 million dollars of notional value.

so, you can get over 5 (at least) times the leverage.

THAT is the danger

if you are conservative with leverage, there is absolutely no danger in risk

and as far as overnight holds, there is LESS risk since the futures trade (almost ) 24 hrs, and you can set stops for the overnight session