Questions on ZB Mar 17 Futures

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cutetrader

Does any one who has experience on trading ZB can you please help me with following questions.

-> I am starting to trade with ZB and need some help in understanding the TICK value and how the TICK increment works.

->Is it true that if SPY is increasing then ZB decreases?

->Apart from Federal Interest Rate Hikes what news should I watch for a drastic news on this instrument?

Any links/Videos that covers above info would be much appreciated.
 
cutetrader said:
Does any one who has experience on trading ZB can you please help me with following questions.

-> I am starting to trade with ZB and need some help in understanding the TICK value and how the TICK increment works.

->Is it true that if SPY is increasing then ZB decreases?

->Apart from Federal Interest Rate Hikes what news should I watch for a drastic news on this instrument?

Any links/Videos that covers above info would be much appreciated.
More...

http://www.cmegroup.com/trading/int...us-treasury-bond_contract_specifications.html

..trades in 1/32, a full point is valued at $1,000 USD... 1/32 = $31.25

http://www.mrci.com/special/correl.php

..ES(s&p 500) and 30 year bonds.. have -77 correlation currently..

..FOMC/NFP- non farm payrolls, etc. any macro event/news release..

152'06 = 152 6/32



Bonds swing wildly, and lots of stop runs, old school players in the pits use to create massive waves on news releases, only to plummet them or spike them higher, but once news release is in and direction is picked, they usually trend in that direction for most of the day. The best market to watch with Bonds is Gold in my opinion.

Don't trade something new unless, you put in extensive screen time, with that derivative. If you do trade something new, apply strict rules to protect yourself.
 
Last edited:
cutetrader said:
Does any one who has experience on trading ZB can you please help me with following questions.

-> I am starting to trade with ZB and need some help in understanding the TICK value and how the TICK increment works.

->Is it true that if SPY is increasing then ZB decreases?

->Apart from Federal Interest Rate Hikes what news should I watch for a drastic news on this instrument?

Any links/Videos that covers above info would be much appreciated.
More...

Don't trade it.
 
cutetrader said:
->Is it true that if SPY is increasing then ZB decreases?
More...
Not necessarily...
->Apart from Federal Interest Rate Hikes what news should I watch for a drastic news on this instrument?
More...
The Donald... When/if he decides to renegotiate US sovereign debt, it will be drastic news.

In seriousness, there are lots and lots of factors. Inflation, growth, global developments, all these things can move the long bond.

One other thing to note is that you might wanna consider trading the ultra. The long bond contract has some issues, which make it extra tricky at the moment (not enough bonds in the 15 -20y area).
 
I only trade ZB to hedge my TLT position which is there just to get me cash. It's not a perfect correlation obviously but pretty close. Otherwise it just moves all over the place
 
coolraz said:
I only trade ZB to hedge my TLT position which is there just to get me cash. It's not a perfect correlation obviously but pretty close. Otherwise it just moves all over the place
More...
It seems that the ultra futures (UB) would be a closer match for TLT, duration-wise...
 
Spectre2007 said:
http://www.cmegroup.com/trading/int...us-treasury-bond_contract_specifications.html

..trades in 1/32, a full point is valued at $1,000 USD... 1/32 = $31.25

http://www.mrci.com/special/correl.php

..ES(s&p 500) and 30 year bonds.. have -77 correlation currently..

..FOMC/NFP- non farm payrolls, etc. any macro event/news release..

152'06 = 152 6/32



Bonds swing wildly, and lots of stop runs, old school players in the pits use to create massive waves on news releases, only to plummet them or spike them higher, but once news release is in and direction is picked, they usually trend in that direction for most of the day. The best market to watch with Bonds is Gold in my opinion.

Don't trade something new unless, you put in extensive screen time, with that derivative. If you do trade something new, apply strict rules to protect yourself.
More...
Awesome post. Thank you very much I got most of my questions answered.
I thought most of the trading is done via electronically, its good to know that people still trade in Pit rooms these days.
I am using paper account to trade this for 2 months then start this live.

I am still not clear on the co relation , so you mean to say 70% of the time they are inverse of each other? Today was kinda both increased a lot.
Also if gold increases, bond increases right?
 
Martinghoul said:
Not necessarily...

The Donald... When/if he decides to renegotiate US sovereign debt, it will be drastic news.

In seriousness, there are lots and lots of factors. Inflation, growth, global developments, all these things can move the long bond.

One other thing to note is that you might wanna consider trading the ultra. The long bond contract has some issues, which make it extra tricky at the moment (not enough bonds in the 15 -20y area).
More...
Do you know what us the symbol for ultra?
Appreciate your help!
 
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