The Dow Jones Industrial Average is an index that shows how 30 large publicly owned companies
based in the United States have traded during a standard session in the stock market. Also,
known as the Industrial Average, the Dow Jones, the Dow 30 or the Dow, the index is one of
several created by Dow Jones & Company founder Charles Dow and is now owned by the CME Group.
The index includes companies such as Bank of America, Coca-Cola, Microsoft and Wal-Mart.
If you want to place a financial spread bet based on movements of the Dow with Spreadex,
you can trade a product known as the Wall Street Index.
The Wall Street contracts are the second most heavily traded financial spread betting
product by Spreadex members after the UK 100 Index. The readily available information
and widespread coverage of the US markets and the Dow Jones in particular, combined with
liquid and fast moving prices means that everyone from a seasoned pro to a newcomer to
spread betting can use their knowledge of the markets to try to make a profit.
The Dow Jones can make large intra-day and overnight swings so can be quite volatile for a
newcomer. For those willing to accept the risks, the rewards when you get it right can be
huge with 200-300 point daily swings not uncommon.
Spreadex offers a Wall Street, Daily contract as well as different future contracts. These
contracts will offer a spread on the Wall Street of, for example, 10,996-11,000. If you think
the price will end up being higher than our spread at the contract’s expiry period, you can
buy at the ‘offer’ or ‘ask’ price (the higher part of the spread). If you believe the price
will end up being lower, you can place a trade to sell at the ‘bid’ (lower part of the spread).
If your trade is successful you will win the points difference multiplied by your stake.
If your trade is unsuccessful you will lose the points difference multiplied by your stake.
For example, if you placed a £1 buy trade on the Spreadex Wall Street, Daily product on a
spread of 10,996 – 11,000 and then closed out at 11,227 you would win £227 (11,227 - 11,000 = 227; 227 x £1 = £227).
But if the trade ended at 10,887 you would lose £113 (10,887 - 11,000 = -113; -113 x £1 = -£113).