carry cost for Fed Funds

Discussion in 'Financial Futures' started by razf1, Oct 5, 2007.

  1. razf1



    I am new to fed funds futures and wondering what is the best way to play a bullish long term trade in Fed Funds without contago having a materially adverse effect on the trade. Should I look at rolling perhaps every 3-4 months instead of monthly? Would love to hear how other people are handle this type of trade.

  2. Trade eurodollar futures instead in order to reduce slippage
  3. Fed Funds are the probably the worst trade ever done by people who sling 10K a clip in the options pit to get some horrible 3 month edge! trade something else!
  4. or you can play calendar spreads...