EURODOLLAR Information

Discussion in 'Financial Futures' started by russell007, Nov 21, 2005.

  1. Can anyone tell me what Eurodollar is all about and is it possible to trade it on daily bases. I am using TS with a symbol on it as ED and the chart coming up ( etc 30 mint 5 mints ticks charts ) is rather very weird with spikes on it.

    Any suggestions or comments?
  2. Pabst


    What delivery month are you inputting?
  3. Just the @ED . Its a continuous contract [Dec 05]
  4. Pabst


    Try putting in the Dec/06 contract. It's more volatile than the nearby. ATR's in ED dramatically increase as you go further out.
  5. dantes


    If your system is using CME symbols then ED is the floor traded stuff. The futures on Globex are called GE
  6. Okay Thanks

    But what I dont get is, since its Dec 05, Y would I be using Dec 06. Isint it like the way it goes on futures of other regular indees like Russell or Sp mini or Dow ?
  7. dantes


    Euros is the price (or rather the interest rate) of a 3 month deposit at the time of expiration. with short time left that interest rate is almost 100% known. With long time it is very unknown, and hence more volatile.

    Most trading right now is the sep 06 future
  8. Okay I got it.

    But still is it possible to daytrade the current contract i:e Dec 05? What advntages / disadvatges I would face in doing so.
  9. dantes


  10. Yea I got it. Thanks for the info.

    Looks like a new thing for me. A little different then the normal futures I normally trade such as Russell or Sp minis.

    But Dec06 sure looks very trendy indeed.

    Which month contract should be best , I mean How u scale it in and which one you would be choosing and all on under which criteria?

    #10     Nov 21, 2005