Binary options indexes: Trade on the Dow Jones with digital options

binary-options-indexes-dowjonesWe have outlined the different stock market indexes such as the CAC 40, DAX30 and the  FTSE 100. Now here is an article dedicated to the most famous index in the history of the financial markets: the Dow Jones.

What is the Dow Jones index? The Dow Jones, or by its’ full name, the Dow Jones Industrial Average, is the oldest index in the world. It is owned by Dow Jones and Company, publishers of The Wall Street Journal.

History of the Dow Jones: The Dow Jones is the oldest index of the many to exist in the world of finance. Founded in 1884, the composition of the Dow Jones has evolved significantly over time. In the beginning, companies on the index represented sectors linked to the railway industry. The index’s history has been marked by several crashes, such as in 1929, 1987 and more recently in 2008. This latest crash caused strong volatility on the index, causing record price levels to be recorded. For example, the index earned 10.88% in one session, a progression of 889 points.

What makes up this index? It is made up of the 30 largest companies representing all sectors of the economy. The Dow Jones index shares the same peculiarities as the Nikkei. They are not weighted by market capitalization, but by the value of stocks, so the number of shares in each stock has no bearing, nor does the size of the company. As a result, the Dow Jones index doesn’t perfectly represent the US economy.

At the moment, the index best representing the US economy is the S&P 500. Despite this, the Dow Jones remains a very important index due to its’ history and also because it allows you to evaluate US economic growth over time as the calculation has not changed. It is important to note that the European markets react to changes on the Dow Jones, which has a large influence on other stock exchanges. It is the market with the highest volume of transactions.

Trading binary options on the Dow Jones can be very enjoyable. This index is available on the financial platforms of brokers found in our comparison tool. Make your first deposit in order to trade digital options on the Dow Jones and benefit from the highest possible profits!

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