Discussion in 'Index Futures' started by Riskadverse, Aug 9, 2005.

  1. Hi,

    I have just started trading the bund/bobl and was just wondering if anyone else trades these contracts.

    Is it better to trade them as a spread, or take a directional view in one of them and use the other as a hedge ?

    Also, if trading them as a spread do you use bollinger bands with other indicators such as the rsi to help with trading views, or are there any better methods?

    Lastly, i have heard a little about the Avg. directional movement index and the Directional movement index, but unfortunately don't know much about them, can anyone help me here? Are they useful for spread trading, or more suitable for outrights ?

    Don't want to step on any toes, but am just starting out. Any help greatly appreciated.

  2. Yeah loads of people trade them, don't worry, you won't be alone :p

    I would say better outright, but then they are easier to spread than say S+P/dax ....
  3. The spread trades are very active in the Bund (10yr), Bobl (5yr), and Schatz (2yr), just as they are in the US in the FIT (pronounced Fite, 5 vs 10), and the NOB (Notes over Bond, 10 vs 30).

    As a side note, I just read that Eurex is bringing back the BUXL, the 30 year Euro contract, just as the US is re-issuing the 30 yr US Treasury product.

    Some traders actually trade the Euro yield curve spreads against the US yield curve spreads.
  4. yeah, I've got a long bund/short 10yr spread on right now .... that's my tip of the month guys, feel free to piggy back that one, been in it for a month or so now