Trading 10 year or 30 year?

Discussion in 'Financial Futures' started by youngtrader, Mar 26, 2007.

  1. I am thinking about day trading the bonds but am somewhat confused on some aspects of the bond markets.

    First is why do the bond charts look a lot different than all the other market charts? Do bonds really lack that much volatility? If so why arn't they that volatile? How do bond traders make money there seems to be hardly any movement during most of the day so do they just make markets all day?

    What is the best bond to daytrade the 10 year or the 30 year? I like the 30 because of the full point trade and the 10 only trades in half a point. But the 10 has a lot more volume than the 30. My stratagy is pretty much a straight forward scalping method so I think bonds would be perfect for me.

    I would also like to know what you bond traders out there would recommend for a college degree in bond trading? I imagine that a degree in economics would probley be the best but lately I have heard everything from math and finance to economics and computer programming.

    Thanks in Advance for the replies
  2. rosy2


    how do you intend to scalp a market that doesn't move too much?

    As for college degree, personally i don't care as long as you have one, can use a computer, are smart as measured by the usual tests, and stand out from others some how.
  3. cant scalp just position trade this market currently. the market is dead. markets waiting for visible signs either way till this goldilocks summer duldrum breaks.
  4. are you kidding yourself?
    Last couple of trading sessions; the bond market was pretty wild.

    Bond market is droved by economical news release; fed decision; and etc...

    You can get off bond market before 11 in the morning; started at 6 or 7 of course.

    Edit: I meant bond futures; and I love the hours.
  5. when I say scalp I mean scalp the bid and ask be able to follow the market flow
  6. The bid/ask you're competing against is generally very large. The moves occur on the floor, in my experience. As a result, it seems unlikely you'd get regular fills on the bid or ask.

    Even now (after hours) on bonds there are between 500 and 1800 contracts on the inside bid and ask. Only 3406 electronic contracts were exchanged today.

    10 year may be even worse. At the moment, there's 2800 contracts on the inside bid, 490 on the inside ask. Today, a total of 7249 contracts traded hands electronically.
  7. If you want price movement, trade the 30-year. If you want to sit on the bid and offer, start with the 5-year. Later on, move over to the 10-year if you need more price movement.
  8. Given CBOT's pro-rata price matching algorithm on the 5 year, you may NEVER get filled on the bid or offer with anything less than a few thousand contracts.
  9. Surdo


    I suggest you start off paper trading and then graduate to 1 lots in the 30 YR.

    Figure out what makes 'em move and then try and be on da' correct side of da' market during Non Farm Payrolls or housing starts!

    good trading!

  10. The 5's went back to FIFO In Nov 06.
    #10     Mar 27, 2007