Discussion in 'Financial Futures' started by 0008, Aug 8, 2009.
Euribor is a derivative most often used as a hedge for another product with the same duration. Big money doesn't trade interest rate products outright, regardless of the duration.
I mean trading spread, is it feasible? Is it common?
1)....but it'll really, really be tough because more than likely you'll be "scratching" lots and lots of trades, have infrequent one-tick profits, have one-tick losses and work "too hard" to make money. Your clearing firm will probably love you for trying.
2) It's unreasonable to expect the market to "sit still" so you can buy-the-bid and sell-the-offer with "size".
0008, PM me if you want to join a chatroom of ours. Most of the people there are locals trading Euribor/short sterling; mostly spreads, flies etc, but there's really all sorts.
Seeing as how there's a whole bunch of people there doing the very thing you're asking about, I daresay it's possible.
nazzdack, it might be tough, but everything is relative. As I said, a few people I know are doing it, with a modicum of success.
yes, i would say the majority of the volume comes from spreaders
I don't know if this is necessarily true... I do think that there's quite a lot of euribor being traded outright. Granted, a whole bunch goes through vs other products, whatever they might be (options, OTC, bonds, etc)...
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