I have attached a screen shot with my Question(s) attached with the screenshot, as well as the Individual of the 4 main Bond Markets themselves ..... the 30 year 10, 5, and 2 year My question boils down to, if I am understanding correctly , what each of the Price Increments represent ( in terms of P/L ) from the charts themselves .... some are listed in .50 , some in .20 , .10 and .05 Thank you for the help
http://www.cmegroup.com/trading/int...us-treasury-note_contract_specifications.html http://www.cmegroup.com/trading/int...us-treasury-note_contract_specifications.html http://www.cmegroup.com/trading/int...us-treasury-note_contract_specifications.html http://www.cmegroup.com/trading/int...us-treasury-bond_contract_specifications.html
Very easily googled at CME. Note the tick value. Notional values are 100k for ZF , ZN and ZB which are the 5yr, 10 and 20 yr. respectively. A move in ZF from a price of 100-000to 101. 000 ticks from -000 to -002 to -005 to -007 to -010. These are 1/4 of 1/32 ticks where each tick is $1000/32 = $31.25 or around 8 bucks a tick. ZN works in 1/2 of 1/32nd ticks , from 100-000 to -005 to 100-010 to 100-015 to 100-020 ..... 100-032 to 101-000. You place your limit and stop orders at these levels. Watch them for a while. ZT , the 2 year Note (200k notional value) trades in quarters and follows closely with FED policy as do 90 day Eurodollar futures (EDZ15 is December contract) which trades in quarter basis points ($8) , where 1 bp. Is 25 bucks. There is as you see , only small nuance in the tick sizes etc.. But it is the increasing pace, volatility , of the ticks as you move out to ZB(there is a 30 year Ultarbond as well). ZB rips through these equal value ticks where ZT crawls. There is another useful concept, DV01, dollar value per basis point, for each instrument. For example, the 20 year bond and 2 year note may each rise 2 basis points on a giiven day but the DV01 for the 2 year may be $30 and the DV01 for the 20 year may be $150. Youwould need to know this if you were to trade a spread to equalize these diferent volatilities.