Dow futures are CME futures contracts on the Dow Jones Industrial Average. The E-mini Dow (YM) is worth $5 per index point, and the Micro E-mini Dow (MYM) is worth $0.50 per point. They trade nearly 24 hours a day on weekdays, so "Dow futures" headlines before the open show where traders expect the Dow to start. Traders also use them to trade or hedge the Dow directly.
When you see "Dow futures down 300 points" on an evening news ticker, that's the YM contract trading while the stock market is closed. Dow futures are both a sentiment gauge and a tradable product. Here's how they work.
Contract specifications
| E-mini Dow ($5) | Micro E-mini Dow | |
|---|---|---|
| Symbol | YM | MYM |
| Exchange | CBOT (CME Group) | CBOT (CME Group) |
| Contract value | $5 × DJIA | $0.50 × DJIA |
| Tick size | 1 index point | 1 index point |
| Tick value | $5.00 | $0.50 |
| Settlement | Cash | Cash |
| Expiration | Quarterly: March, June, September, December | Same |
A 300-point Dow move is $1,500 per YM contract and $150 per MYM contract. Always check current margin requirements with your broker, because exchange and broker margins change with volatility.
Trading hours
Like other CME equity index futures, Dow futures trade Sunday 6:00 p.m. to Friday 5:00 p.m. ET, with a daily halt from 5:00 to 6:00 p.m. ET. They're most liquid during US cash hours (9:30 a.m.–4:00 p.m. ET) and around 8:30 a.m. ET data releases.
Score the Setup Before You Take It
TRADZY's Void Engine rates any setup 0–100 across 12+ variables: structure, trend alignment, volume, momentum and key levels.
Score a Setup Free →Why Dow futures move before the open
The stock market closes at 4:00 p.m. ET, but news doesn't stop: earnings after the close, Asian and European markets, overnight geopolitical events, and pre-market economic data. Futures price that news in real time. By 9:30 a.m. ET, the difference between Dow futures and the prior Dow close gives a good estimate of where the index will open.
Two cautions:
- Fair value. Futures normally trade slightly above or below the index because of interest rates and dividends. "Futures up 50" can mean a roughly flat open once fair value is accounted for.
- Thin overnight trading. Moves during Asian hours can reverse by the US open.
Dow futures vs S&P 500 and Nasdaq futures
| YM (Dow) | ES (S&P 500) | NQ (Nasdaq-100) | |
|---|---|---|---|
| Underlying | 30 stocks, price-weighted | ~500 stocks, cap-weighted | 100 stocks, cap-weighted, tech-heavy |
| Point value | $5 | $50 | $20 |
| Typical character | Steadier, more cyclical and value exposure | Broad benchmark | Most volatile, rate-sensitive |
| Liquidity | Good | Deepest | Very deep |
Because the Dow is price-weighted, a few high-priced components drive it, which sometimes makes YM diverge from ES. See What Is a Stock Market Index?
How traders use Dow futures
As a pre-market read. Check YM, ES and NQ together. If all three point the same way, the open's tone is clear. If YM is up while NQ is down, rotation is under way (value over tech).
To trade the Dow directly. Day traders trade YM/MYM around the US open, key levels (prior day high/low, overnight high/low) and data releases. MYM's $0.50 per point makes it workable for small accounts.
To hedge. Holders of Dow-heavy portfolios can short YM to hedge market risk without selling stocks.
Risk management for YM traders
- Know your dollars per point before every trade: $5 (YM) or $0.50 (MYM).
- Size from the stop. A 60-point stop on one YM contract is $300 of risk. On a $10,000 account at 1% risk, that's too big, while MYM would be $30.
- Respect data releases. CPI, jobs and FOMC days can move the Dow hundreds of points in minutes.
- Watch the roll. Trade the front-month contract with the most volume, and roll about a week before expiration.
New to futures? Start with What Is Futures Trading? for margin, rollover and tax basics.
TRADZY's TradLog records futures trades in points, ticks and R, so you can compare YM results with ES or NQ and see which market actually suits you.
FAQ
What are Dow futures?
Futures contracts on the Dow Jones Industrial Average, traded on CME Group's CBOT. The main contracts are the E-mini Dow (YM, $5 per point) and the Micro E-mini Dow (MYM, $0.50 per point).
Do Dow futures predict the stock market?
They show where traders are pricing the Dow right now, which is a good guide to the opening level. They don't predict the rest of the day. Opening moves often reverse.
What time do Dow futures open?
Sunday at 6:00 p.m. ET, then nearly 24 hours a day until Friday at 5:00 p.m. ET, with a daily break from 5:00 to 6:00 p.m. ET.
How much is one point on Dow futures?
$5 per point on YM and $0.50 per point on MYM.
Are Dow futures and the Dow the same?
No. Futures track the index but trade at a small premium or discount (fair value) because of interest rates and dividends, and they trade when the stock market is closed.
Put This Into Practice
- Score your next setup 0–100 with the Void Engine before entering
- Log the trade and tag the setup in the TradLog
- Review weekly: keep what pays, cut what doesn't
Start Free in TRADZY →
Educational content, not financial advice. Trading involves substantial risk of loss.