Learning to trade ZB

[FX-Trader]

Quote from SethArb:

Trade ZB or ZN options?
Is there any volume in the electronic version compared to the pits ?

And guess, who is going to offer them, too ? (see page 7)

www.eurexchange.com/download/brochures/marketingbrochure_eurexus.pdf

This will be funny, when Eurex fees are $0.50 (per side) lower than CBOT fees (for non-mebers).

(Eurex US start scheduled for February 01, 2004)

 

[FX-Trader]

Quote from FX-Trader:

And guess, who is going to offer them, too ? (see page 7)

www.eurexchange.com/download/brochures/marketingbrochure_eurexus.pdf

This will be funny, when Eurex fees are $0.50 (per side) lower than CBOT fees (for non-mebers).

(Eurex US start scheduled for February 01, 2004)

Oops, the difference may be even $0.65 per side (for non-members) !

 

[easyguru]

Quote from electron:

It's incredible how well they trend. 30 ticks today and I am just starting. The simplest system that I was once using for ES and that is not that good anymore because of the ES range contraction and frequent headfakes works like a charm in bonds. I just feel guilty that I made money so easily.

Last few weeks have been good but that may not be representative of normal times. normally you will see more volatility. Few months back it was very choppy.

 

[svtrader]

I'm currently trading NQ and would like to learn more about trading ZB and ZF, so I have a few questions:

1. Which is the high volume instrument, and is that the best one for trading?
2. Is the trading electronic during the day or is it pit only?
3. I'm using IB (and Qcharts). Is IB OK, or is there a better broker (why)?

Looking at the WSJ, I noticed that the volume listed for Treasury Notes is 465K for Monday, for 5 yr Treasury Notes is 193K, and for Treasury Bonds is 149K. It's not clear what the 465K volume represents.

Thanks in advance for your response!

 

[SethArb]

pre market AH

lets say from 8:45 - 8:59 pm est

I see prices all over the place

are those prices really orders lined up
or is there someone just playing games

before the 9pm EST re open?

 

[DblArrow]

Quote from svtrader:

I'm currently trading NQ and would like to learn more about trading ZB and ZF, so I have a few questions:

1. Which is the high volume instrument, and is that the best one for trading?
2. Is the trading electronic during the day or is it pit only?
3. I'm using IB (and Qcharts). Is IB OK, or is there a better broker (why)?

Looking at the WSJ, I noticed that the volume listed for Treasury Notes is 465K for Monday, for 5 yr Treasury Notes is 193K, and for Treasury Bonds is 149K. It's not clear what the 465K volume represents.

Thanks in advance for your response!

1. ZN, the 10 yr notes has 2 to 3x the volume of the 30yr. And the ZF, 5yr notes has almost double the 30yr.

2. ZB (30), ZN(10), ZF (5) are all electronic - US, TY, and FV are the pit versions.

3. IB or any direct access broker will work - I use IB, only electronic markets are traded on IB.

Hope this helps,

Make 'em pretty, Chris

 

[svtrader]

Thanks for the prompt response, DblArrow!

Considering the better liquidity of the 5yr and 10yr, is there any reason why one would want to trade the 30yr? Also do you have a feel for whether most people daytrade or hold these contracts overnight?

 

[DblArrow]

Quote from svtrader:

Thanks for the prompt response, DblArrow!

Considering the better liquidity of the 5yr and 10yr, is there any reason why one would want to trade the 30yr? Also do you have a feel for whether most people daytrade or hold these contracts overnight?

The bonds can move 24 ticks (24/32) where the 10 may only move 30 ticks (15/32) and the 5 yr may only move 18 ticks (9/32). There is a larger money range in the ZB.

How does one really know what is a day or longer term trade? That being said - Bonds I get the feeling that more are day (just my feeling only), but the 5 and 10 are used by the bigger banks and institutions for hedging, etc. thus I think there is still a lot of position trading in these. That is only my feeling, based on the way I have watched them trade.

Make 'em pretty, Chris

 

[vanilla2]

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