Looking for ideas to put this trade on

Discussion in 'Trading' started by RichardNixon, May 21, 2010.

  1. Hugh Hendry said something like:

    How can I put a similar trade on?

    How can I put a similar trade on for the US instead of UK?
  2. bighog

    bighog Guest

    I remember we used to have a saying about ole "Tricky Dicky". It went like this......

    "Stick the dick to Dick before Dick sticks the dick to you"

    1970's :)
  3. You'll have a long journey till you get there but the idea is to play on the Eurodollar futures contract (ED).
    Start by understanding the product itself.
    Remember that there is a credit component in the price.
    Then study option combos like put spreads and call spreads.
    And the cherry on top is to get a clue of what the bank is going to do, hike or not. For that you'll need all your macroeconomics ammo and read a lot of stuff.
    I'ts doable but you'll need practice and a lot of dedication to achieve that. Aint no free lunch. It's a style of trading and it's up to you to see if it's your style. Not mine.
  4. Thanks for your reply.

    The reason I'm asking is because I want to learn. I'm not going to run out and trade this without understanding.

    I know most of the normal option setups and I have traded them in the past on indices and equities.

    What I'm most interested in are the various vehicles I can use to trade something like this.

    Unless I'm miss-reading Hendry I'm thinking something like this:

    The idea is that lots of people talk about inflation and expect interest rates to rise. How do I take their money? Through which vehicles?

    Then I want to bet that interest rates will not rise. Which vehicle?