TWI
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Euribor or Bund is good place to start.
Introductory Guide: BE CAREFUL it's a big boys market
The sb spreads I have seen have been horrendous D4F currently quote 97.83/86 in Sep Euribor whereas on exchange it is 97.83.5/84 at Eur12.50/tick (0.005) that is a very wide spread if you wanna lift..
FI is a professional market if you want to trade it actively the only way is direct exchange access. Other than that I think you are OK if you are playing for developing trends. They certainly do trend now and again but you may want to wait for an indication that the next tightening cycle is on cards first.
Introductory Guide: BE CAREFUL it's a big boys market
The sb spreads I have seen have been horrendous D4F currently quote 97.83/86 in Sep Euribor whereas on exchange it is 97.83.5/84 at Eur12.50/tick (0.005) that is a very wide spread if you wanna lift..
FI is a professional market if you want to trade it actively the only way is direct exchange access. Other than that I think you are OK if you are playing for developing trends. They certainly do trend now and again but you may want to wait for an indication that the next tightening cycle is on cards first.
JK - Twalker is bang on. Virtually impossible with SB. Direct the best; and Bunds are the most liquid 'electronic' market in the world. I am not a Eurex spokesman - just in case!
You can also download / get some relevant guides from Eurex website to start reading up on.
You can also download / get some relevant guides from Eurex website to start reading up on.
JTrader
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Trading interest rates
Hi
I would like to know a bit about trading interest rates.
If anyone can provide some/any basic information about how interest rates are traded, I will be very grateful.
what are the methods/broker types that it's possible to trade interest rates with?
Are interest rates exchange based?
Is interest rates trading a regulated market?
How do the stakes work - in terms of position size descriptions?
How does the potential for profit and loss compare to forex trading?
How big a market is interest rates trading compared to forex?
Which are the main/most liquid interest rates to trade?
Does trading via just conventional TA work well?
Is a level 2 order book available?
Is interest rates trading a 24 hour market?
What do interest rates traders need to look out for that may affect the prices? - the same Economic news releases that affect forex prices?
Any feedback gratefully received
Many thanks
jtrader.
Hi
I would like to know a bit about trading interest rates.
If anyone can provide some/any basic information about how interest rates are traded, I will be very grateful.
what are the methods/broker types that it's possible to trade interest rates with?
Are interest rates exchange based?
Is interest rates trading a regulated market?
How do the stakes work - in terms of position size descriptions?
How does the potential for profit and loss compare to forex trading?
How big a market is interest rates trading compared to forex?
Which are the main/most liquid interest rates to trade?
Does trading via just conventional TA work well?
Is a level 2 order book available?
Is interest rates trading a 24 hour market?
What do interest rates traders need to look out for that may affect the prices? - the same Economic news releases that affect forex prices?
Any feedback gratefully received
Many thanks
jtrader.
Rhody Trader
Senior member
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The futures market is the primary way for individual traders to operate in fixed income.
Yes, though not generally as rates per se, but rather at fixed income instruments such as Bonds, Bunds, Gilts, Eurodollars, etc.
Yes, the futures markets are regulated.
Each futures market has it's own size definitions, which are pretty readibly available. There are also some mini sized contracts.
Depends on the method of trading you use.
Not even close. Forex is bigger than all the other markets combined.
Eurodollars are the highest volume across the board. You can find liquid trade in instruments based in all the major currencies.
It certainly can.
Yes, but not with the same kind of activity you would see in forex.
Most of the same indicators apply. Actually, the fixed income markets tend to be more sensitive to these releases than are forex or equity markets.
I would start out by trading the schatz and hedging you position with one or may two option against it. It doesn't move very much in comparison to the bubl and the bund making the options cheap. You will also have more time to learn about the markets before you go broke!(or a least it will keep you in the game until you learn how to make money)
