How to start trading Dow Jones Index with Capital.com?
To start trading Dow Jones Index with Capital.com, Open Capital.com CFD Account and log in to the Capital.com Official Website.
Then you need to make a deposit to your account before starting trading Dow Jones Index.
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Why is the Dow Jones Index so important?
The Dow Jones Industrial Average is usually called the “Dow Jones Index”, or “Dow Jones” or “Dow Jones Index” for short. The Dow is a price-weighted index represented by real-time prices, used to track the market value of 30 companies listed on the Nasdaq (NASDAQ) and the New York Stock Exchange (NYSE).
As one of the longest established and most watched indexes in the world, the Dow Jones Index has now become a barometer of the global financial market. Both investors and media commentators generally regard it as a summary of the overall performance of the US stock market.
The constituent stocks of the Dow are the shares of the top 30 companies in the world by market capitalization, including Apple (AAPL), Exxon Mobil Corporation (XOM), The Walt Disney Company (DIS), etc. For this reason, the Dow is deeply favored by our customers.
The Capital.com trading platform provides you with real-time stock prices of the Dow Jones Indices and easily track price trends.
Dow Jones index trading hours
The Dow component companies are all listed on the New York Stock Exchange (NYSE) or NASDAQ (NASDAQ), and the trading hours are: Monday to Friday 09:30-16:30 (EST).
On the Capital.com trading platform, you can monitor the price changes of the Dow Jones Index 24 hours a day, and use real-time price charts to trade.
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How to trade Dow Jones Index CFDs?
The Dow price usually provides traders with a high degree of liquidity; it can accurately reflect the volatility, technical analysis, benchmark support and resistance levels of the US market, and the “psychological” level that traders value, such as 20000.
Traders are also keen to trade the Dow because of its many constituent stocks, which correspond to a “basket” of US stocks rather than a single stock. To a certain extent, these stocks will not be affected by the fluctuation of a certain company’s stock, and will be more stable in maintaining a broader share of the US stock market.
Traders also like to trade the Dow because they don’t just focus on one person’s stock. They are trading “baskets.” U.S. stocks are protected to some extent from the volatility of any one company, while maintaining investment in the broader U.S. stock market.
Now you can trade Dow Jones Indices using Contracts for Difference (CFD). There is no need to trade with traditional stock exchanges, and long and short two-way opening positions are supported.
Dow trends are sometimes clearly displayed on real-time charts. Some Dow Jones traders have found that market trends have clear signals on different time scales, which makes Dow Jones widely popular among CFD traders around the world.
Choose Capital.com to trade Dow Jones CFDs. Register a Capital.com account now, enjoy the web version and mobile client trading experience, and enter the global hot market anytime, anywhere.
How is the Dow Jones Index calculated?
Unlike other major indexes such as the FTSE 100 Index or the Nasdaq 100 Index, the Dow Jones Index is a price-weighted index, that is, stocks with higher stock prices are more weighted in the Dow.
To calculate the Dow Jones Index, you need to calculate the sum of the prices of 30 constituent stocks, and then divide the sum by a divisor, called the “Dow Divisor”.
Over time, there will be some additions and subtractions in stock prices, such as joint stocks and stock splits, which will have an impact on the index. Taking this factor into account, the divisor has been adjusted to ensure that the Dow’s value is not affected.
For example, on June 26, 2018, the Dow index divisor was 0.14748071991788. Under this value, every dollar price change of a stock within the average is equivalent to 6.781 (or 1/0.14748071991788) price change.
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The history of the Dow Jones Industrial Average
The history of the Dow Jones Industrial Average can be traced back to May 26, 1896. At the time, Charles Dow-the founder of Dow Jones and later as an editor at the Wall Street Journal-first compiled and published this indicator to reflect the performance of the US stock market.
Dow Jones calculated the first average from 12 industrial stocks, and none of the 12 stocks are part of the index. General Electric, which was still in operation at the time, was part of the initial average and was later removed from the index in 2018.
The Dow Jones index’s biggest one-day gain ratio occurred in the bear market of the 1930s. On March 15, 1933, the Dow increased by 8.26 points, ending the bear market with a closing price of 62.10.
On October 3, 2018, the Dow broke the current record with 2,6833.5 points.
Over the years, there have been many types of indexes named after the Dow Jones, including the Dow Jones Transportation Average and the Dow Jones Utility Average.
What is the Dow Jones Transportation Average?
The Dow Jones Transportation Average includes stocks of 20 companies that provide transportation services. The index was founded by Charles Dow on July 3, 1884. It was created earlier than the Dow Jones Industrial Average, and its calculation method is the same as the industrial average.
What is the Dow Jones Utilities Average?
The Dow Jones Utility Average (Dow Jones Utility Average) includes the stocks of 15 American companies that provide electricity and natural gas. The index was founded in 1929, when all public utility stocks were removed from the Dow Jones Industrial Average.
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Comment by Diletta
March 26, 2024
Awesome bonuses, good leverage. A few hiccups, but support rocks!