What kind of leverage can you get trading bonds?

Quotes from Buy1Sell2:

what advantage is margin when the underlying moves less than other markets? You need to compare daily ranges with margin to see where you get the most bang. Still though, I would recommend not trading at more than 5 to 1 regardless of exchange requirements ie 1 10 yr contract per 20,000 equity.

Disregard exchange minimums and use your own . It's all a part of sound money management




You don't see the contradiction here?

 

yes that's exactly my point.

 

haircut efficiency = leverage x stat vol

 

Oy vey... thanks anyway.

 

determine which contracts offer the best chances for movement within your timeframe. Never trade at more than 5 to 1 leverage using appropriate stops. Disregard exchange minimums--no one should be trading at those levels--they become the weak hands---use limit orders for entry and exits

 

Any comments on the measures of
- % Margin
- Effective % margin
- Contracts to trade for equal dollar profit
- Relative contract liquidity
that are constantly printed on monthly TASC for futures liquidity?

 

Any common ways and how?

 

riskarb's calculations are probably the correct way, but I do it by
trading different instruments to have a feel for what moves and what doesn't. In my view it's fx Futures as they have decent overnight movment I think. 10 yr notes have better US daytime movement than they do at night, so I would trade them during the US day etc along with the fx Futures. It's just trial and error for me.

 

I think liquidity sometimes would be even more important.

 

Well, it's certainly a simple addition.