At IB, you can, apparently, short Treasuries, actually Treasuries, not futures, with as small a lot size as 1. (And at the opposite end of the risk scale, margin requirements of 1 to 6 percent).
Questions:
When I tested a trade, my order confirmation said on a bond priced at 122, I receive $122. How is that? The bond was $1220. Is there some bond shorthand here I am missing? Some odd bond accounting? The principal isn't reported or something?
Finally, which bonds should I short? Long term or short term. And if I short a 20 year at say 122 and have to pay out 1 percent interest or whatever the coupon is on a 20-year, then do I only make money with price, meaning short-term. Forget holding for 10-20 years and waiting to plummet to or below par? Is below par a possibility?
Can you only make money this way if you leverage up?
Having a hard time finding retail traders who do bonds, not bond futures.
Any bond traders out there?
Questions:
When I tested a trade, my order confirmation said on a bond priced at 122, I receive $122. How is that? The bond was $1220. Is there some bond shorthand here I am missing? Some odd bond accounting? The principal isn't reported or something?
Finally, which bonds should I short? Long term or short term. And if I short a 20 year at say 122 and have to pay out 1 percent interest or whatever the coupon is on a 20-year, then do I only make money with price, meaning short-term. Forget holding for 10-20 years and waiting to plummet to or below par? Is below par a possibility?
Can you only make money this way if you leverage up?
Having a hard time finding retail traders who do bonds, not bond futures.
Any bond traders out there?