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Contract History

If you are interested in trading Dow Industrial Index futures it is helpful to become familiar with the description of the Dow Industrial Index market. The Dow Jones Industrial Average is one of several stock market indices that was created to show how certain stocks have traded. The average is computed from the stock prices of 30 of the largest and most widely held public companies in the United States. The "industrial" portion of the name is largely historical. Many of the 30 modern components have little to do with traditional heavy industry. The average is price-weighted.

In order to compensate for the effects of stock splits and other adjustments, the DJIA is currently a scaled average, not the actual average of the prices of its component stocks. To calculate the value of the index, the sum of the component prices is divided by a divisor, which changes whenever one of the component stocks has a stock split or stock dividend. Since the divisor is currently less than one, the value of the index is higher than the sum of the component prices.

Dow Jones Industrial Average

Click on the link above to download a very informative .pdf brochure entitled "Equity Products: Dow Jones Industrial Average Futures and Options". It was published by the Chicago Mercantile Exchange. This is a must read guide for any novice or advanced trader considering an investment in the DJIA Index futures and options.

Click here to contact a commodities broker with experience in the Dow Jones Index market.

Top 10 Weighted Companies as of 8/29/01*
3M (MMM)7.2%
IBM (IBM)6.9%
Proctor & Gamble (PG)5.2%
United Technologies (UTX)4.7%
Merck (MRK)4.6%
Microsoft (MSFT)4.0%
General Motors (GM)3.7%
Johnson & Johnson (JNJ)3.7%
Boeing & Co. (BA)3.5%
Caterpillar (CAT)3.5%
*The Dow is price-weighted so unlike the other indexes, the most influential companies are those with the highest share price.