ahh, ok. I was thinking that we were talking about the mini-sized a/c/e contract which has a multiplier of $500 per point, the graph appears to be something else. Maybe the big contract?
Yes, that's the big contract (US or ZB on ace). I don't think that the $500 contract (YH) was available back then. You don't forget a day like that I shorted a couple of ZB's at 108-24, literally seconds before the announcement. It was a R1 or R2 level if I remember.... I held through the first push, and even the second, but then bailed at 110-27 on an attempt at a third high....lost a quick $4k -- ouch! Got some of it back the next day by shorting at 112-12. I couldn't believe that price! It was overbought at 108! Anyway, it can move big and quick, but so can anything else....
ouch indeed... With the mini contract that kind of adverse movement isn't too unreasonable. There have been many similar moves on the index futures as well, over the last year or so. I guess what is really the most important factor to me, is how well these markets trend. In my experience with system trading, I get the best results in trending, less volatile markets trading 3-5 timed per week. If some of these a/c/e and non-index globex products offer that then I think I would like them. I will probably trade many of those at some point in the future, to test the waters, but at the moment I am hesitant to shell out the $60 per exchange per month for quotes.
Extreme move in bonds such as the one on Oct. 31 are rare however they do happen. Maybe because i'm from a fixed income trading backround but I have found bond futures much easier to daytrade than equities.
I'm looking @ daytrading these as well. Won't have much input until I do though. Any ideas on strategies, avg. no of trades per day, size of stops etc. would be interesting to hear. Cheers
take a quick look at at the YH volume/open interest (YH U2 28/58 - YH Z2 1/4) ... and forget it. regards wild
True there is no volume in "mini Treasuries" But the "big" Bond contract typically has about or less the dollar range of ES, the Ten Year Note has about or less the dollar range of NQ and the Five Year which trades volume of 100k plus on ACE has a range of a few hundred dollars a day. The 10 year and 5 year also trade in half ticks, $15.625 i.e. 1/64ths as opposed to the $31.25 per tick (1/32) Bond. The Notes are a semi-cheap way of getting one's feet wet and offer tremendous liquidity.
If you are interested in trading the bonds and maybe are a night owl (or in Europe) you should look at the Bund which trades on Eurex. It trades electronically, very technically and is very deep (you can get 5000 stuff off if you wanted too) Brandon
the CME Eurodollar contract ED (not to be mistaken for the Euro/Dollar currency contract EC) is the most actively traded US futures contract www.cme.com/products/interest_rate/products_interestrate_eurodollars.cfm second only (occasionally) to the Eurex´ Euro Bund contract www.eurexchange.com/index2.html?mp&1&5&marketplace/products_specification_fgbl_en.html hope this helps wild