Anyone here experienced with trading SOFR futures?

We’ve been spread trading SOFR’s the past several months as liquidity improves. Doing it exactly like Eurodollar and Eurobond futures spreads - butterflies and condors mostly.

From my experience, most novice hedgers are actually compounding their risk profiles. As Norbert mentioned, to correctly “hedge” requires extensive experience and modeling expertise. I used to hedge commercial power and fuels.
 
Nobert said:
Buying futures in order to hedge from inflation with no experience, while considering that to be a safe place.

Don't do that.

Stay on cash, less problems.
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Or just learn perhaps? How about that for a change?
 
tonyf said:
Or just learn perhaps? How about that for a change?
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I don't think you have time and the resources for that. SOFRs are mostly traded by commercials so your counterparties are full time wizzkids.
Pricing and modeling is really complex and you should not expect any "free tools" to do that for you. STIRs in general are a shark pool of professionals and HFT prop - shops so you better prepare yourself before you jump. Online resources, news and information are really rare, so unless you're willing to spend either a couple of grand on education or a couple of months on learning math and coding, I don't think you'll have a fair chance.

They are NOT a safe place to store cash. Look into inflation linked bonds (ILBs)...I'm sure there is an ETF for that :)
 
MrMuppet said:
I don't think you have time and the resources for that. SOFRs are mostly traded by commercials so your counterparties are full time wizzkids.
Pricing and modeling is really complex and you should not expect any "free tools" to do that for you. STIRs in general are a shark pool of professionals and HFT prop - shops so you better prepare yourself before you jump. Online resources, news and information are really rare, so unless you're willing to spend either a couple of grand on education or a couple of months on learning math and coding, I don't think you'll have a fair chance.

They are NOT a safe place to store cash. Look into inflation linked bonds (ILBs)...I'm sure there is an ETF for that :)
More...

2k on education is fine by me. Any resources in mind?
 
tonyf said:
Or just learn perhaps? How about that for a change?
More...
I didn't mention that as an option, since, it comes by as a default solution & as an answer to any problem out there.

Good luck to you, if you choose to do so.
 
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