Big Dow?

[torero]

wsam, how's the liquidity? fills are quick even on the bid or ask?

[brownsfan019]

	Quote:	Soultrader
	Has anyone traded the Big Dow? The tick increments are 5 times the YM but is anyone familiar with the price movements of the BIG DOW?

Soul - I haven't looked at it in awhile, but I think the volume is anemic. I was kinda hoping it might take off, but guess the interest is not there (yet).

[Soultrader]

Hey brownsfan,

Yea I can totally see that... I think big traders would rather go with the S&P's instead. If the BIG Dow does take off in the near future, I think alot of YM traders will have a decent edge over others. It could also change the price action of the YM. Alot of traders rely on the S&P as the YM moves very similar. But if they start following the Big Dow... should get interesting.

[wsam29]

	Quote:	torero
	wsam, how's the liquidity? fills are quick even on the bid or ask?

liquidity...just think 3X3 on the bid/offer 3 ticks wide so if you wanted to trade size, its gonna be tricky.

its mostly 1 lot trades here and there.

DD would be lucky to get 100 lots traded for the day.

But like all new products being introduced, it takes time for the trading community to accept and trade the product.

When the SP was first introduced, it had the same problems like the DD, not much volume and the spreads were wide and to make matters worse, it had no other index to track because it was the first of its kind.

[The Bear]

Hey there - I trade the big dow. I can say liquidity is good but I don't trade alot of contracts so I don't know if it would apply to you.

It usually is like wsam said 1 tick wider than YM...but I've seen it go even wider sometimes. However it does track YM and it does have market making...so there is almost always at least 1 contract on either side.

I learnt the hard way about my stop loss getting blown because the spread widened more than usual once...so use a bigger stop.

Even on the BIG DROP day we had recently, the big dow was still tracking YM very tightly. It would be nice to see the spread match the YM, but I doubt this will happen. Some days DD only does 60 contracts..IN THE WORLD.

All in all, I like the big dow...great leverage.

[wsam29]

The one thing that I can think of the DD never matching the YM in terms of the bid/offer, the pros that make a market for the DD need to off set their trades with the YM.

Just think.

DD 12000 bid
YM 12001 bid

if the market maker gets hit on the DD bid, he can immediately offset his risk by selling 5 YM and pocket 1 tick. One thing I learned about how market makers think, is how they can offset their risk ASAP.

The SP and ES are the same, from what I heard its pit traders offsetting their risk with the ES. Just imagine, an instutution comes in with a big order and to keep their business the local would fill the order and offset his risk with the ES in order to keep that "client".

They do play favourtism in the pits from what I hear as well.

Because its a "pro" or local making the market for DD and SP, their spreads will always be wider than the YM and ES for that reason alone.

Heck if I had the speed and ability, I'd pocket 1 tick all day long and just do volume to make all those ticks.

Just a totally different train of thought for locals.

[cooter]

There is a misconception here.

The DD Big Dow is a recent entry into the futures world at the CBOT. It is ELECTRONICALLY traded, not pit traded.

The pit traded Dow product remains the $10 DJIA contract, also traded electronically after hours.

[walterw]

Whats the big dow ticker symbol ? thanks

[The Bear]

Symbol = DD

[The Bear]

	Quote:	cooter
	There is a misconception here. The DD Big Dow is a recent entry into the futures world at the CBOT. It is ELECTRONICALLY traded, not pit traded. The pit traded Dow product remains the $10 DJIA contract, also traded electronically after hours.

Nobody ever said the DD was pit traded.