What is the Dow Jones index?
The Dow Jones is a weighted index of the market price of the thirty largest publicly-traded companies on the New York Stock Exchange. All thirty companies listed are American blue-chip, with large market capitalisations and a stable earnings history. The thirty stocks in the Dow jones industrial average frequently dictate the movement of the entire stock market. Thus the US30 (or the Dow Jones, or simply the Dow) can be described as price-weighted indices, where changes in the price of any of the stocks can have a positive or negative impact on its value.
Movement of the Dow Jones index in the last years
A variety of stock-related factors can affect the value of the US30 index because it is a price-weighted index tracking the performance of some of the largest stocks in the US. Also, factors affecting overall economic activity can place additional pressure on the value. Traders should closely monitor for events which may affect stock prices along with the US economic data and the political situations.
The biggest cumulative loss suffered by the US30 was during the Great Depression in the US, when it lost nearly 90% of its value between 1929 and 1932. Another large point drop in history occurred on 16 March 2020, when concerns over the ongoing COVID-19 pandemic engulfed the market, dropping the Dow Jones Industrial Average by 2,997 points in the second and third quarters. Recovery from the pandemic was swift however, returning to pre-pandemic highs of approximately 29,580 points by November 2020, and increasing month-on-month steadily since. This can be attributed in part to the market dominance of the tech giants, stimulus from the federal reserve and Congress, and investor expectations of a strong recovery and re-emergence.
How to trade US30
US30 trading can be performed with different types of instruments or assets. Choose the method that suits you best; providing liquidity, low costs, swift execution, and focus on your strategy to trade US30.
You can use futures contracts to trade Dow Jones, locking down the price of the asset and you have a defined expiration date. But fixing your price for a predefined period means that you do not have a high degree of flexibility to capture a trading opportunity that may only arise at the expiration date. Trading index futures also means that you cannot liquidate a portion of your position as you need to wait for the expiration date, or you can close the overall position by entering into the opposite contract. Futures contracts can be a complicated trading instrument.
Tokenised assets and tokenised commodities are instruments that enable you to profit by opening positions with assets or commodities without owning them. The tokenised assets are created by Currency.com leveraged trading platform with a technology that ensures an easy recording and execution of transactions, elimination of intermediaries and enhancement of safety. With the blockchain technology, Currency.com creates tokens that imitate the performance of the underlying assets and enable traders to speculate on the price movements of the reference asset.
Tokenised US30 trading guide
Trading tokenised US30 index is easy and, in many ways, the process is similar to trading other types of securities. There are a few basic steps:
Step 1: visit the Currency.com trading platform and open an account by completing the two-factor authentication security process.
Step 2: choose how much you want to deposit into your account. It is possible to trade with either crypto or with fiat currency.
Step 3: calculate the value of the position you want to open, or you can calculate the size of the position based on your available capital and the percentage margin. For example, a position of $10,000 would require that you have $100 of available capital when you trade tokenised US30 1 : 100 (1%).
Step 4: positions are opened using the same approach in place at other investment platforms - i.e. taking a long position if a US30 price increase is anticipated, or shorting if there is an expected decline in theUS30 price value. The handy US30 price chart could be used to monitor price movement.
Step 5: Currency.com links the open the trading positions between its clients and all unpaired buy or sell orders that are hedged with Capital.com, LMAX Digital or, if needed, with Binance, Bitstamp, Kraken, NASDAQ, NYSE and Gain Capital.
Step 6: you may also consider placing a take profits order or initiate a stop loss order.
Trade tokenised US30 with Currency.com
Tokenised US30 trading at Currency.com tokenised assets exchange has a number of advantages. Tokenised assets are underpinned by robust and immutable blockchain technology. Opening a trade will give you a token that tracks and moves according to the underlying instrument's price, which can be carefully monitorred in real time on the US30 index live chart.
Trade the tokenised Dow Jones Index with a tight market spread, and benefit from maker rebates and competitive taker fees.
Effective risk management
Manage your risks and secure your profits with stop loss and take profit orders and mitigate any losses with negative balance protection.
Instant order execution
Currency.com has a scalable and low latency order management system, which can execute 50 million trades per second. It is a high-growth, crypto platform seamlessly linking the booming world of cryptocurrencies with the world of traditional financial assets. Powered by simple, slick and intuitive technology, the platform is designed to enable investors to securely buy, trade and invest in popular cryptocurrencies using both crypto and fiat currencies.
Depending on the regulatory perimeters in different countries Currency.com offers different products around digital assets. To help investors trade with confidence, the platform is fitted with robust risk management controls, transparent pricing and extensive financial education content.
Currency Com US LLC is registered with the Financial Crimes Enforcement Network as a Money Services Business. Its parent entity, Currency Com Limited is licensed by the Gibraltar Financial Services Commission as a Distributed Ledger Technology (DLT) Provider. The company has offices located in the US, Belarus, Gibraltar and Ukraine.