YM and Dow overnight exposure

[sirviente]

Hi !

I was wondering, why does the YM emini keeps trading overnight even though the Dow is closed ? Does it become an open market, or is it still depending on the 30 stocks pricing ?

Thanks
Ulises

 

[arabianights]

In theory it can trade anywhere during the cash market being open as well. The only reason it follows the cash is due to the activity of arbitrageurs. Also be aware there is aftermarket trading of the dow stocks... I recall the indicitive dow (.DJII on reuters) being 1200 down last jan when soc gen were liquidating their possitions...

 

[sirviente]

Hello Arabiannights,

What is the cash market, and what does it have to do with the Dow ? Who are the arbitrageurs, part of CBOT Employees ?

Thanks
Ulises

 

[sirviente]

Ok so i read a bit arbitrageurs, and CBOT and brokers... but many of these things are "dark" to the public's eye. Which of course, is only made for "the big ones" and no individual trader could do.. Ok.

But coming back to the original question, who determines overnight pricing ? open market demand on the YM ?

Thanks,
Ulises