Long Trade in the Dow Jones Industrial cash index

As explained in my previous post, I only trade the Dow Jones Industrial index. As a CFD trader, I can trade the Dow Jones future or the Dow Jones cash index.

The abbrevation for the Dow Jones cash index is UsaInd with my broker:

Time Symbol Type Direction Volume Price Swap Profit Comment
2017.12.07 15:12:27 UsaInd buy in 0.50 24106.01 0.00 0.00
2017.12.07 15:23:52 UsaInd buy in 0.50 24093.98 0.00 0.00
2017.12.07 15:30:03 UsaInd buy in 0.50 24105.08 0.00 0.00
2017.12.07 15:31:37 UsaInd sell out 0.50 24110.77 0.00 19.25
2017.12.07 15:31:38 UsaInd sell out 0.50 24109.77 0.00 17.13
2017.12.07 15:31:50 UsaInd buy in 0.50 24106.93 0.00 0.00
2017.12.07 15:32:11 UsaInd buy in 0.50 24118.15 0.00 0.00
2017.12.07 16:20:42 UsaInd sell out 1.49 24195.88 0.00 549.40
2017.12.07 23:01:13 balance 0.00 0.46 1858413 DIVIDEND 70352063_33
2017.12.08 20:46:46 UsaInd sell out 0.01 24294.68 -0.09 7.90


The difference between the future and the cash index is that it may be more convenient to choose the cash index for long-term investments.

When I hold a long position (buy the market) overnight, the broker pays a dividend (see 23:01:13 dividend 0.46).

Furthermore, the future is only active for 3 months. If I want to hold a position long-term, I would have to close the position and re-open it in the next 3-month future.

So buying the cash index may be an option for investors or long-term traders.

But beware, the broker also asks for a fee when holding a short position (sell the market) overnight.

The cash index also causes some costs when held overnight, here you can see 0.09 swap for overnight investment.

This topic is to be continued in my next post.

Here are some charts and comments on this trade:

Stop below daily low

I bought a little bit too early:

Buy again

Reduce the risk

Buy again

This looks so good

Red line is broken

Sell and buy again in order to compensate the losses I made before

That looks good

Sell 1.49 CFDs in order to make the profit

I ended the trade market with almost 200 points of profit:

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