How are the bond future price adjusted ?

Discussion in 'Financial Futures' started by Raheel Shaikh, Sep 8, 2021.

  1. Raheel Shaikh

    Raheel Shaikh Sponsor

    is it like an equity index in that it is adjusted for dividends(interest),
    but are there any other funding interest fees to buy?

    Also, do brokers charge for margin on futures in the same way they would for equities?
     
  2. Repoguy

    Repoguy

    In the case of US Treasury securities. They pay interest semi annually but accrue interest daily. In the case of leveraged investors in treasuries this coupon accrual is offset but the interest expense of the borrowed funds (repo interest).

    Exchanges set the margin requirements and yes Treasury futures have margin requirements.
     
    Raheel Shaikh likes this.
  3. SunTrader

    SunTrader

    A sponsor asking such a question?

    Looks more like just getting the name out.
     
  4. Overnight

    Overnight

    No. Futures brokers do not charge for "margin on futures".

    Break the performance bond requirements at any given point in time, and they will probably liquidate your position.
     
    Raheel Shaikh likes this.
  5. Raheel Shaikh

    Raheel Shaikh Sponsor

    ah ah! i seee
    what if you over leverage and go into heavy negative drawdowns, at that point do you owe your broker that amount ?
     
  6. Overnight

    Overnight

    Well, yeah. If your NLV is below zero at settlement, you technically owe the broker that amount.
     
    Raheel Shaikh likes this.
  7. Raheel Shaikh

    Raheel Shaikh Sponsor

    Right what i thought
    Trading without risk management here is digging your own grave. :caution: