Where can you trade credit default swaps?

Discussion in 'Retail Brokers' started by demoship, May 4, 2007.

  1. Can you do it at IB?
  2. No, but you can trade OTM puts there.
  3. CDS is an OTC [ over the counter ] traded instrument. The typical trade size in a cds trade done OTC is 10MM. It's *not* for the individual investor [ quite frankly, some of the idiots i've seen at some of the big banks calling our desk shouldn't be trading them either ]..

  4. I've only read about them - so it seems you may know more, but don't they function as typically a binary put option to corporate bonds?

    Is that 10mm = total cost of the CDS? Or is that just the notional portion that the CDS insures? What is the typical $$ amount value of smallest increment CDS?