BUND Traders-Serious!!!

Quote from NazAttack:

I've been trading Bunds since 1996 and think its a great contract to trade, the exchange fees are reasonalble, unlike all Globex products (roughly 3 times more expensive) and if converting to USD, its a nice conversion for the past few years.

It is, however, a tough contract to trade for the faint of heart or beginners.. the moves are sometimes illogical, but if you maintain your view points and practice good risk management, you will do fine.

Also, the algo/automated arguement is BS.. IMO, as long as there is a bid/offer and movement up & down, it is a tradable market. I frankly believe that much of the negative talk in this area comes from traders that cannnot be successful, so rather than blame themselves.. they blame the programs and thats a bunch of BS. The only time I feel any degree of manipulation is near days end when the market is thin enough for one trader to really move it around, or prevent it from moving lower or higher along with the US 10 yr note.
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thanks NazAttack...can you answer this question I've had regarding Bund trading...Question...I live and trade from the USA through a US futures broker. If I trade the Euro Bund, do I need to pay taxes in Europe? File a tax return in Europe? A Europe transaction tax or anything else?...or, it just goes into factoring my normal US taxes only at the year end?
 
I scalp bund futures (fgbl) from short side time to time. (target 6-7 ticks, SL 10 ticks)What I have spotted is that mark fisher's ACD methodology pretty works there at least until US bonds open (opening range of 15 mins, german time(08-08.15)A value of 8 ticks, C 5 ticks) Also open a time&sales screen and look for big (>100). they generally follow up. An additional checkpoint may be to watch bund future option implied volatility although I didnt personally try it. (most probably IV will rise when underlying is about to break)
 
"or, it just goes into factoring my normal US taxes only at the year end?"

Eurex and Liffe/Euronext both have CFTC "no action" letters on file, which means you just use form 1256:

http://www.irs.gov/pub/irs-pdf/f6781.pdf

Your broker will also provide a 1099-B to the IRS. So, if you're a US citizen you just pay US taxes on Eurex and Liffe futures.
 
Quote from bone:

"or, it just goes into factoring my normal US taxes only at the year end?"

Eurex and Liffe/Euronext both have CFTC "no action" letters on file, which means you just use form 1256:

http://www.irs.gov/pub/irs-pdf/f6781.pdf

Your broker will also provide a 1099-B to the IRS. So, if you're a US citizen you just pay US taxes on Eurex and Liffe futures.
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awesome! thanks so much Bone!
 
Hey Bone...if you were going to do a 1 contract vs. 1 contract spread...would it be 10y vs Euro Bund or 5yr vs Euro Bund?...or would have to add come contracts to even out?
 
Quote from increasenow:

it is all here www.eurexchange.com
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I haven't found it. Just in case, I want to be precise: I'm looking for information on the underlying for which the bund futures are the derivative. I'm not looking for information on the bund futures.

Thanks
 
pls check http://www.eurexchange.com/trading/products/INT/FIX/FGBL_en.html

to summarize, underlying for bund futures is any swiss, italian or german bond with remaining term 8.5-10.5 years and coupon rate of 6 percent. (also some constraints with issue amount, other dates etc.)

this brings something called cheapest to deliver (CTD) because there are many types of bonds fulfilling this requirement. obviously cheapest will be selected for delivery. CTD value has also some implications for selecting ratios at bund/schatz/bobl spreads
 
Anyone recommend a good prop shop in London, specifically in terms of atmosphere?

Had a look at a few places but they looked like proper depressing. Don't want a bunch of loser’s negativity bringing me down.
 
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