Original Content: Business Upside
The Dow Jones Industrial Average (DJIA) is America’s oldest and most-watched index. Founded by journalists Charles Dow, Charles Bergstresser, and Edward Jones, the future Dow Jones index was part of their research. The research helped them to better understand market movements and analysis. The DJIA tracks the American industrial economy and comprises 30 blue-chip stocks. This means that the companies on the DJIA roster are considered reliable investments in the market.
How do futures work?
A future, in simple words, is a contract, which legally binds two parties under an agreement. The two sides can be individuals or institutions. With this agreement, the two parties agree to exchange money or assets based on the predicted prices of an underlying index.
Dow Jones Futures are commodity trades, with agreed-upon prices and dates for delivery in the future. They allow investors to predict or speculate on the future value of stocks. This prediction occurs before the beginning of a trading day on the Chicago Board of Trade (CBOT) at 7:20 am.
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