EURODOLLAR Information

russell007 · Nov 21, 2005

Can anyone tell me what Eurodollar is all about and is it possible to trade it on daily bases. I am using TS with a symbol on it as ED and the chart coming up ( etc 30 mint 5 mints ticks charts ) is rather very weird with spikes on it.

Any suggestions or comments?

Pabst · Nov 21, 2005

Quote from russell007:

Can anyone tell me what Eurodollar is all about and is it possible to trade it on daily bases. I am using TS with a symbol on it as ED and the chart coming up ( etc 30 mint 5 mints ticks charts ) is rather very weird with spikes on it.

Any suggestions or comments?

What delivery month are you inputting?

russell007 · Nov 21, 2005

Just the @ED . Its a continuous contract [Dec 05]

Pabst · Nov 21, 2005

Quote from russell007:

Just the @ED . Its a continuous contract [Dec 05]

Try putting in the Dec/06 contract. It's more volatile than the nearby. ATR's in ED dramatically increase as you go further out.

dantes · Nov 21, 2005

If your system is using CME symbols then ED is the floor traded stuff. The futures on Globex are called GE

russell007 · Nov 21, 2005

Okay Thanks

But what I dont get is, since its Dec 05, Y would I be using Dec 06. Isint it like the way it goes on futures of other regular indees like Russell or Sp mini or Dow ?

dantes · Nov 21, 2005

Euros is the price (or rather the interest rate) of a 3 month deposit at the time of expiration. with short time left that interest rate is almost 100% known. With long time it is very unknown, and hence more volatile.

Most trading right now is the sep 06 future

russell007 · Nov 21, 2005

Okay I got it.

But still is it possible to daytrade the current contract i:e Dec 05? What advntages / disadvatges I would face in doing so.

dantes · Nov 21, 2005

sure you can trade it, but dont you want volatility?

look at todays stats for example:

http://www.cme.com/trading/dta/del/...uctFoiType=FUT&ProductVenue=R&ProductType=itr

No movement at all in dec 05

russell007 · Nov 21, 2005

Quote from dantes:

sure you can trade it, but dont you want volatility?

look at todays stats for example:

http://www.cme.com/trading/dta/del/...uctFoiType=FUT&ProductVenue=R&ProductType=itr

No movement at all in dec 05

Yea I got it. Thanks for the info.

Looks like a new thing for me. A little different then the normal futures I normally trade such as Russell or Sp minis.

But Dec06 sure looks very trendy indeed.

Which month contract should be best , I mean How u scale it in and which one you would be choosing and all on under which criteria?

Thanks