How are the bond future price adjusted ?

[Raheel Shaikh]

is it like an equity index in that it is adjusted for dividends(interest),
but are there any other funding interest fees to buy?

Also, do brokers charge for margin on futures in the same way they would for equities?

 

[Repoguy]

In the case of US Treasury securities. They pay interest semi annually but accrue interest daily. In the case of leveraged investors in treasuries this coupon accrual is offset but the interest expense of the borrowed funds (repo interest).

Exchanges set the margin requirements and yes Treasury futures have margin requirements.

 

[SunTrader]

A sponsor asking such a question?

Looks more like just getting the name out.

 

[Overnight]

...

Also, do brokers charge for margin on futures in the same way they would for equities?

No. Futures brokers do not charge for "margin on futures".

Break the performance bond requirements at any given point in time, and they will probably liquidate your position.

 

[Raheel Shaikh]

No. Futures brokers do not charge for "margin on futures".

Break the performance bond requirements at any given point in time, and they will probably liquidate your position.

ah ah! i seee
what if you over leverage and go into heavy negative drawdowns, at that point do you owe your broker that amount ?

 

[Overnight]

ah ah! i seee
what if you over leverage and go into heavy negative drawdowns, at that point do you owe your broker that amount ?

Well, yeah. If your NLV is below zero at settlement, you technically owe the broker that amount.

 

[Raheel Shaikh]

Well, yeah. If your NLV is below zero at settlement, you technically owe the broker that amount.

Right what i thought
Trading without risk management here is digging your own grave.

 

[murray t turtle]

In the case of US Treasury securities. They pay interest semi annually but accrue interest daily. In the case of leveraged investors in treasuries this coupon accrual is offset but the interest expense of the borrowed funds (repo interest).

Exchanges set the margin requirements and yes Treasury futures have margin requirements.

%%
AND main trend is down\adjusted down;
YTD % is down also.......[WORSE than an eguity index,worse than most ETFs this year]

 

[atmtrades]

A futures price is determined by the cost of its underlying asset and moves in sync with it. The cost of futures will rise if the cost of its underlying increases and will fall as it falls. But it is not always equal to the value of its underlying asset. ... This price difference is termed Spot-Future parity

 

[Raheel Shaikh]

gotcha