Eurodollar Futures (GE)--anyone else trading these?

T

trdinglife

First let me clarify, I am not talking about the currency!

As a new member, and with my first post, I am wondering who else on this site has been trading GE. Personally, I have been trading the first four calendar months for about 6 months. I think it is a fantastic product and one that can be traded effectively with less risk than the 10yr, 30yr, Bund etc... Not only are the screen based volumes increasing, it is really the only short term US interest rate product available to screen based locals. Fed Funds are only traded in the pit. Any other traders out there willing to share their experiences on GE?
 
I've looke at the product from time to time, and have placed some trades, but haven't had as much time to focus as I'd like. Yes, the Globex product suite is looking over-the-top. Even the spreads are offered. I'm in Singapore watching the floor volume drying up. The Singapore exchange just placed 18 electronic trading stations on the floor and is pushing locals to begin trading electronically. Looks like the SGX ED/GE floor is about to go extinct.

What I heard is that SGX is looking at getting out of the ED and teaming with NYMEX to offer Asia-based pit trading of the NYMEX energy complex. That evolution should boost overnight GE trading as well.
 
Interesting stuff BlueH...and not altogether unexpected that pit based trading in coming to a close in yet another location...since the CME allowed pit based locals in the Eurodollar to use handhelds, the screen based volumes have skyrocketed...this has led other locals to start trading it on screen as well as the average bid or offer is now upwards of 1000 instead of just 50 only 8 months ago!
 
Quote from trdinglife:

Interesting stuff BlueH...and not altogether unexpected that pit based trading in coming to a close in yet another location...since the CME allowed pit based locals in the Eurodollar to use handhelds, the screen based volumes have skyrocketed...this has led other locals to start trading it on screen as well as the average bid or offer is now upwards of 1000 instead of just 50 only 8 months ago!
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Yes, I should have also mentioned that next month SGX will be making hand-helds available to their locals for the first time. SGX is finally making a real push to go electronic.
 
Quote from trdinglife:

First let me clarify, I am not talking about the currency!

As a new member, and with my first post, I am wondering who else on this site has been trading GE. Personally, I have been trading the first four calendar months for about 6 months. I think it is a fantastic product and one that can be traded effectively with less risk than the 10yr, 30yr, Bund etc... Not only are the screen based volumes increasing, it is really the only short term US interest rate product available to screen based locals. Fed Funds are only traded in the pit. Any other traders out there willing to share their experiences on GE?
More...

I think this is a great product. It is a very nice contract for newbies to learn on, as the margin is low and the volatility is manageable, except around data releases. It has historically been very amenable to trading longer term using trend following strategies.
 
Quote from AAAintheBeltway:

I think this is a great product. It is a very nice contract for newbies to learn on, as the margin is low and the volatility is manageable, except around data releases. It has historically been very amenable to trading longer term using trend following strategies.
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Wise words...it is indeed a great product...but I have to say, the volatility around the data releases is not to be feared...merely capitalized on...I have talked to many locals who are afraid of figure releases...guess what, the biggest moves in virtually any product is after one of these releases...why fear this, for locals this is your single biggest opportunity...for example, the last non-farm release, any one who feared that should not have had a position ahead of it...look, what I want to really find out is if there are any traders of GE out there who trade it intraday...and don't fear data releases...
 
Quote from atorchio:

How do you trade GE? Swing, daytrade, spreads?
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take a look at a chart.

what would you do?

personally, i prefer a spread or long term (days/weeks)
 
Quote from FredBloggs:

take a look at a chart.

what would you do?

personally, i prefer a spread or long term (days/weeks)
More...

Tend to agree with you.

How do you select contracts' expirations to build spreads?

I trade agriculturals, bu there we don't have old/new crop!

Is it a matter of volume, or life of contract, or what?
 
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