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He could and he could not, it is a way to play with the yield curve. I suggest you a nice book: Trading STIR Future The first chapters explain you the way STIR works, you can start with that and then look around in internet. The general message is, no free lunch out there :)

Not as simple as it looks like. To understand the value you must consider the underlining... in other words if you have an asset that just give you a dividend it depreciate its value in capital. your approach look a bit approximate to me

to me it looks like that been long on corn ETF is not that different that been long on corn and keep rolling. The question is been long on corn (and keep rolling ) is good for long term holding? Btw, no problem with the garden.. probably your broker will close the position for you :)

So true bone! This rabbit hole is quite deep. Thanks to Martin I have all the pointers for digging into the topic; Martin, I owe you a beer ;-) My naive view was to look at future for bonds as a low risk investment but it looks like that it is not the case. Btw, I am familiar with...

2% daily gain = 720% in one year? (raw estimation...) If you have that performances you will not have any problem in finding someone to invest in your skills.

I totally agree, My naif view is that if the company will give dividends to the owner(s) this income will be taxed following the tax regulation where the owner(s) live. but let' me underline that this is just my naif view ...

let me see if I got it right: still having the same example where you buy in september the future of december and you sell it in december: Let's assume the following: Ui = value of the underlining at inception Us = value of the underling at selling Ri = roll down at inception Ii =...

just google: http://www.startups.ch/en/

yes, old time that i know. I am try to understand and give a meaning to this difference in order to identify the key factors that may influence that that number... example, if you are long and the underline move from a 5% to a 6% interest rate will the future still be a bit profitable?

mmmm I think that I got it (thanks). A couple of follow up questions: a) let's assume that I buy in september a future with delivery december. Let's also assume that I will sell it just before the settlement. What will I earn (or loose)? Will I earn something for holding the future for 3...

tnx martinghoul, so you are saying that there is not a decent hedge for BTP and OAT. Are they a savage land? :)

IB clearly the cost of the commissions and this is the only broker that put right in front of you the costs that you have: CTS (*), for example does not and make me afraid of hidden costs. However this is just a first impression because i never used it (yet :) ) For the folks that are...

Well... BTP are volatile like hell positively correlated with spanish bonds and negatively correlated with germans. Interest rate does not look like influence them at a first look. Do you have any link where I can learn a bit more?

yes.. but this strategy reminds me a bit china with USD

Why not setting up a fresh new legal entity oversea?

trades are on the paper account for the moment so, no panic :) I am considering the followings: a) been (partially)long on BTP b) trade the spread between GBL and BTP c) been (partially)long on OAT but i am new to bond futures, so I would like to (try to) avoid the "usual mistakes"...

sorry... BTP and OAT i.e. Italy and French you are right, German ( GBL ) do have options Talking about BTP and OAT i was only able to find the future, I am wondering how i can hedge a trade that involve them.

just reporting a question that is relevant for this forum too: http://www.elitetrader.com/vb/showthread.php?threadid=247423

not exactly the answer but some useful material: http://www.eurexchange.com/download/documents/publications/eurex_bond_futures.pdf

Sorry for the newbie question but.... is there any way to have/create a call on a bond future? how would you hedge against a bond future? Do you just buy the underlining?