Well, my comment wasn't really meant for the retail trader, who can't use the box in this way, but in general for the big guys who can and do use it this way.
Yeah I tihnk that is what I was getting at, even the retail trader cannot use it for borrowing so I do not see any reason for a retail to do a box unless of course they leg into it.
Yeah I tihnk that is what I was getting at, even the retail trader cannot use it for borrowing so I do not see any reason for a retail to do a box unless of course they leg into it.
A profitable leg should always be covered. Why incur a small haircut unless you're expecting a large move in rates? I trade boxes all the time into a rate-prediction. A box is a pure-play on STIR.
