Info about TB and 10yr note trading

I have only traded index futures but these markets now interest me so im just after some information about how they move as all i use is EOD data for my trading, they trade in 1/32 or 1/64 ?, now how does this work price wise, i use CSI and it shows data in this way, i will use Fridays close as an example at 122.285, now were would be the price (next tick) either side of this figure using that price ?.

There is loads of volume but again looking at a chart it seems to me like this market moves a chunk at a time, now during the day how would it typically trade, for the E-mini for example its going to be 850, 850.25, 850.50, 850.75, 8.56 etc, although it does gap a tick now and again its usually quite orderly, are these bond markets the same or does price tend suddenly move a significant way ?, really want to get handle on placing a stop should i trade it.

Any info or advise would be appreciated

 

30yr and 10yr move in increments of 1/64. Although it used to be 1/32 so that is still considered full ticks and 1/64 movement would be considered a half tick, which is the minimum change.

If you take a look at a price ladder or chart you should be able to pick this up but it looks like this:

122.295
122.290
122.285
122.280
122.275

So let's say if 122.285 was traded last the next trade above may be at 122.290, then 122.295, and so on. Below 122.285 the next trade down might be 122.280, then 122.275, and so on.

A movement of .010 or 1/32 is considered a full tick and a movement of .005 or 1/64 is considered a half tick, the minimum movement.

Since it's based on 32 full ticks, when the trade is at 122.315 the next trade above would be 123.000, then 123.005 and 123.010 and so on. The trade under 123.000 would be 122.315, 122.310, 122.295 and so on.

Hopefully that makes sense and helps you. As for how it moves and stop placement my advice is to watch it trade for awhile and see what you can learn. If you read some of the other threads in this section you'll see there is a preference to go back to 1/32 as the minimum price movement. Good luck!

Check out the contract specs here:

http://www.cmegroup.com/trading/int...us-treasury-bond_contract_specifications.html

http://www.cmegroup.com/trading/int...us-treasury-note_contract_specifications.html

 

Thanks D&S that much appreciated

Can you or someone just clarify based on the above example the difference between 122.315 to 123.000 is $685 ?, then it trades from 123.000 in $5 ticks eg 123.005, 123.010 etc, once it reaches 123.315 then its a $685 tick up to 124.000, so there are 63 $5 ticks followed by a leg up,down of $685 = 32 ticks (64 half ticks) ?.

Thanks

Pager

 

A full point, between 123.000 to 124.000, is divided by 32 full ticks or 64 half ticks.

From 122.315 to 123.000 is only half a tick, no diffferent than 123.000 to 123.005. The price ladder looks like this:

123.005
123.000
122.315
122.310

(So no there is not a missing 68 ticks there)

Each half tick change is $15.625, not $5. So that's $1,000 per full point.

Hope that helps clear it up.

 

AAAAAAAAAAAAh

Thanks, yes got it

 

Good. It also might help to think of it as a fraction and just put /32nds at the end. Think of 122'280 like 122 and 28/32nds. 122'285 would be 122 and 28.5/32nds. 122'290 would be 122 and 29/32nds. So when we have 122'315 its easy to understand that 122 and 31.5/32nds the next trade up is 32/32nds or 123'000. I think using the decimal point might have contributed to the confusion so I prefer to use an apostrophe to seperate the whole numbers 122, 123, 123 from the fraction part.