I'm learning about trading T-Note and T-Bond futures and want to know why they trade in 32nd's? Any book/video/site recos are welcome.
32nd or 64nd?.. or decimals.. Before printing your Tsy notes in-house be adviced that someone else has been arrested ... http://en.wikipedia.org/wiki/Chiasso_financial_smuggling_case
Some US markets still work on the English measurement system of fractions, as opposed to metric decimals. Cash Treasuries are quoted in fractions, so their futures follow suit. Stocks used to be quoted in fractions.
Probably a carry-over from European influence in monetary system. Spain had "pieces of 8" coins... bonds might have been tic-priced on that concept... "1/8" of something being the smallest denomination. For bonds 1/8 was too large of a tic ?? So, 1/32 = 1/4 of 1/8. Also, in US money... "2-bits" = $.25, "4-bits" = $.50. Then, "8-bits" = $1. Stocks in US at one time had 1/8 as smallest tic... then went to 1/16 before decimalization.
almost everything used to trade in fractions. the never moved to decimals. personally, i don't think it matters.