Eurodollar spreading

Quote from Martinghoul:

Fly and condors, yes... As to the outright long trade, you can think of it as a terminal rate bet. So, let's say you bot U6 Eurodollars. If by the end of 2016 rates are still at 0, you stand to make a lot of money (if we forget about mtm volatility).
More...

yeah, I get it.. I don't know why i thought i'd be making a levered interest rate through the futures.. Its all a future bet on terminal spot when buying the individuals..
 
Option trader here. I recently read Aikin and just started Burgdhart's ED handbook (thanks to this thread). I was excited to trade STIRS, since Aikin made them sound so appealing. But I am disappointed to learn that this genre is ill-suited to retail (particularly retail trying to make a living). I have enjoyed studying this and planned to continue a great deal, but if I understand correctly, perhaps my time is better spent focusing on options. Obviously there are different viewpoints in this thread, could it be that STIRs are a great product in Europe, but unideal for most in America?
 
Quote from ferrycorsten:

Option trader here. I recently read Aikin and just started Burgdhart's ED handbook (thanks to this thread). I was excited to trade STIRS, since Aikin made them sound so appealing. But I am disappointed to learn that this genre is ill-suited to retail (particularly retail trying to make a living). I have enjoyed studying this and planned to continue a great deal, but if I understand correctly, perhaps my time is better spent focusing on options. Obviously there are different viewpoints in this thread, could it be that STIRs are a great product in Europe, but unideal for most in America?
More...

Short term interest rate trades aren't necessarily European..

You can make money trading Stirs.. It broadens your understanding of the market.. Which is edge in itself.! Plus its a low vol trading style
 
Quote from cdcaveman:

Short term interest rate trades aren't necessarily European..

You can make money trading Stirs.. It broadens your understanding of the market.. Which is edge in itself.! Plus its a low vol trading style
More...

it's not whether they're european/american (euribor/eurodollar), it's the location where you can have success trading them. seems like in america that unless you work at a reputable prop firm, it is not advantageous to trade them. however in europe, it seems that retail has a much better chance of success.
 
Quote from ferrycorsten:
it's not whether they're european/american (euribor/eurodollar), it's the location where you can have success trading them. seems like in america that unless you work at a reputable prop firm, it is not advantageous to trade them. however in europe, it seems that retail has a much better chance of success.
More...
It depends on your style, really... To be able to do the full array of stuff, you do need access to some prop-like tools, in Europe or US. If you just wanna do very basic things, you can do them in a retail context.
 
Quote from Martinghoul:

It depends on your style, really... To be able to do the full array of stuff, you do need access to some prop-like tools, in Europe or US. If you just wanna do very basic things, you can do them in a retail context.
More...

Name something basic if you could
 
Quote from cdcaveman:
Name something basic if you could
More...
Well, let's say you believe Bill Gross and you're convinced that rates won't rise until 2016 or smth... You could just buy, I dunno, some Sep15 contracts and hold them until Sep 2015. Or something similar with FedFunds, which would be cleaner.
 
That's a bit harder, given what's priced in. There are things you could do in options, I suppose, but there's definitely going to be more risks and complications with those.
 
You must log in or register to reply here.
Back
Top