Hi I've got a few questions - many thanks if anyone can help. Which Nikkei futures contract is best to trade - 225 or 300? Is one more liquid than another? Also can anyone help me understand the difference between T-Bills, T-Notes and T-Bonds? Also what the british LIBOR is too? thanks in advance J-S
Check the CME and CBOT websites for detailed information about the contracts and you should find the info. As far as liquidity - compare the average daily trading volume of the contracts and that should tell you which is more liquid.
It shouldn't take much as we are trading it on our prop side. Need to work out a few things before we can make the next step.
A Treasury Bill is a US Government issued security that matures in 1 year or less. A T-Bill sells initially at a discount from par. The interest is the difference between what you pay and the face value that you get at maturity. A Note matures in less than 10 years but more than 1. A Bond has a maturity of 10 to 30 years. They both pay interest twice yearly. The only difference between Notes and Bonds are the initial length to maturity.
LIBOR is the London Inter-Bank Offered Rate. The rate is usually similar to that of the 1 year Treasury Security Index. It is the rate that banks will pay to borrow money from other banks. Similar to what in the US is called the Fed Funds Rate.