E-Mini DOW Contract Specifications; tick value, margin requirements, round term commissions

Symbol: YM (CME) Tick Value: 1.00 (11000) Cost/Tick: .00 usd Margin: 0 usd/contract Benefits: low cost per tick Drawbacks: low cost per tick, not a very efficient way of earning income, low volume Best Time to Trade: 9:30 — 1230pm & 3:30 — 4pm EST Favorite Pattern: Trend Continuation Pattern through the highs Favorite Timeframes: 13-Range for Day Trading, 21 & 34-Range for Swing Trading The mini dow, or the YM as most traders know it, is often considered a starting point for many new trader because of its low cost of entry into the market. I do not agree with this, and consider the mini dow to be a riskier market to trade for new traders because of its cost of doing business compared to its profit potential. Just like the Pound & e-mini Nasdaq futures contracts, this is the perfect ‘practice’ market for a few reasons. First, the low cost per tick on the pound makes this a very inefficient means of earning day trading profits. Simply put, if your cost of entry is equal to the cost per tick, this market is too cheap for your cost of doing business. For example, if you pay .00usd for each trade on pound futures, you will spend usd to trade 4 contracts each time you buy and sell. This may not sound like much, but over 100 trades this makes a difference. I need to profit at least 4 ticks just to break even on the trade, so I need to make more money to keep it. On the flip side the losses are compounded because your 10 tick stop loss now looks like 14 ticks (40 …
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knightcapitalmanagement.com Learn how to day trade futures with Tiger of Knight Capital Management. Introduction to our eMini Dow (YM) Bull Bear Trading Strategy for traders about how to day trade futures. More Info knightcapitalmanagement.com Twitter twitter.com FaceBook: www.facebook.com Good Trading, David “Tiger” Knight