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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: Dominick who wrote (14320)	10/3/2001 10:46:23 PM
From: Dan Duchardt	Read Replies (1) \| Respond to of 18137

Dominick, The ratio of futures points to index points is nominally 1 to 1. The futures are a bit higher to reflect the interest rate on the money tied up in the futures, the so called premium. When the premium is in line with the interest rate, the futures are fair valued. What is different about futures is the cost per point. The E'minis for Nasdaq are $20 per point and for the S&P500 $50 per point. There is a new Dow mini at $2 per point, but looks very thinly traded so far so the spreads are rather wide. The full futures contracts are more $$ per point. Dan