Where do you invest your cash overnight when not trading?

Discussion in 'Trading' started by misterno, Jun 4, 2011.

  1. I am new to this game and I am not trading much.

    My broker gives me 0.01% for money market account

    But, I am looking at 1 month treasury bill rate it is 2%

    So I am thinking since it is maturing in 1 month, there should not be much price volatility and the gain should be somewhat predictable.

    Am I right? Do you have any suggestions?
  2. rmorse

    rmorse ET Sponsor

    One month T-bills are not 2%. I believe they are closer to .04%. Fed funds are only .18%. Not worth moving around your money when rate are so low.

  3. Yes, the 1 mo tbill is @ 2%, so if you just buy those every month you will earn 24%/yr. Which is a great return, so why bother even trading?


    When CDs, savings, checking, etc. are paying below 1% for the YEAR, you think a 1 MONTH tbill is at 2%?
  4. Bowgett


  5. I see

  6. I get 2% every time I post on et.
  7. 2% of zero is still zero :)

  8. Until short term rates double (or may be triple) from where they are now, only be concerned with safety ... not rate. Unless you are dealing in very large sums the differences right now are truly irrelevant.
  9. Lapdancers and Mojitos.