Question: When option or future market index adapt to the stock market index?
Does the future or option market affect the dow jones index? If they do, When does it happen?
Answer:
Indexes such as the DJIA are not investment products themselves, they are simply a reflection of the value of all the stocks the index is composed of (in this case, 30 companies). Futures and options are both derivative financial products, meaning their value is derived from something else (the value of the underlying commodities or stocks). The value of all of them are constantly changing every second that the markets are open. Futures contracts are ways of hedging against price changes in the future, and buying or selling options contracts gives you the right or obligation to buy or sell the underlying stock by a specified date at a given strike price. I would advise you not to invest in any of these financial products until you have learned a lot more about what they are and how they work.