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I'm curious...you say you think backtesting is the key to success. How would you accomplish your backtesting if you don't like to program? You should be aware that the days of pure spot trading at banks are numbered. More of the quoting/market-making is done by computers all the time. In...

Offering the following constructive criticism/things to think about for an interview: 1. Dates on your resume are screwed up. 2. Why did you leave Bridgewater? Would it have been that difficult to move up to some sort of middle office/assistant position on one of the trading desks? Why...

Here is the answer to the meaning of life, as far as FX goes: Listen close... From any given price you can effectively assume that the next 20-40 pips are random. "How can you make such an audacious statement?", people are no doubt now asking. Consider the sheer size of the market, as...

The term "hedging" makes no sense when applied to spot fx. If you are long EURUSD, for example, and you want to reduce your exposure, you just sell some of your EURUSD. Selling GBPUSD to "hedge" long EURUSD is not a hedge...all you have then is a long EURGBP position. Hedging in the context...

How about this to help people out. 1. To understand the relationship between volatility and price, get yourself an Excel spreadsheet and create some fake data series that have combinations of the following characteristics (high vol, low vol, quickly rising or falling market, slowly rising or...

Have you gone onto the CME website to see what the daily volume is? If you do it will answer your question.

Dude...go back and read my post very carefully...like step #3.

Do the following: 1. Use Google/ET to find out names of the major futures exchanges worldwide. 2. For each exchange, go to their website and look up the contract specs and daily volume/open interest for each contract that is listed. 3. Use this information to calculate the $ (Euro, Yen...

Buy a copy of Galen Burkhardt's book, "Treasury Bond Basis". A fixed income futures price has three components: Cash bond price, Repo rate, and Conversion factor. Using the formula given in the book you can take the futures price, repo rate, and CF and convert them to a cash price, and vice...

Nobody in the entire world, in any market, guarantees stops. I hope no one ever asks this question again. Cash forex might help you avoid getting ripped apart too badly overnight as there is somewhat round-the-clock liquidity, and Globex futures are thin during that time, but in any case...

Stops are just market orders that get activated when the market trades at your stop level. I see the spread for GBPJPY on IB right now is 6 pips (11AM NY time). So you could expect slippage at least as much as the bid-ask.

Bid/ask spread

1. Commissions on buying one contract and selling the other contract 2. The spread, which is about the same as the spread for trading the front contract if you roll around the time open interest switches.

Sorry..crosssed posts

Actually, yes, could you explain "theoretical"? The Dow isn't tradable in that you can call up a broker and ask to buy or sell "1 Dow". You can call up a broker and ask to buy or sell all the component stocks that make up the Dow. In that sense you can have a Dow "market", which would be...

From Bloomberg: 1/14/00 O 11619.35 H 11750.28 L 11612.53 C 11722.98

Used to trade TED spread...cash against futures. What do you want to know?

Anyone who trades cash bonds is intimately familiar with these concepts. The reason the CBOT doesn't talk about this more is probably that all cash traders look at this relationship (called the "basis") but only a subset of futures traders care about basis. In addition, basis affects the cash...

Currently, if a small order (futures or options) comes into the ring it automatically gets placed on an internal electronic platform. Something like anything < 20 lots. So, sounds like they might be opening up that system to external users (through their e-CBOT platform or whatever). Probably...

Excel has a function called YIELDMAT. Use the help to see how it works. All you have to do is get the input variables to plug into the function. Settlement date for US Treasuries is T+1 (make sure it is a good business day).