So a Bloomberg Terminal is $1,500 per month. Why?

[Scataphagos]

Become a disciplined chart trader... KISS... and you won't need Bloomberg nor anything else.

Well, except a new set of balls... likely LOTS bigger than the ones you have now.

 

[1a2b3cppp]

Quote from ElectricSavant:

When you look over the shoulder of the trader and see that text style and layout on his monitor...it is really kewl and he must know what he is doing...

ES

Haha, someone should make a trading program that looks just like it so you can impress your friends!

 

[rew]

Quote from 1a2b3cppp:

lol look at all the people getting defensive in this thread.

Do I need that info? How does knowing that information factor into your trading decisions?

I don't even know what an interest rate swap is.

Here is what an interest rate swap is:

Harry borrows $10,000,000 from Sally at a fixed rate of 3%.
Sally borrows $10,000,000 from Harry at a variable rate of 3 month LIBOR + 2%.

They agree to pay the principal down according to some fixed schedule. Of course, since they owe each other the same amount of principal no principal actually changes hands. But the interest payments do. The contract involves virtual principal and real interest payments. If rates go up Harry wins. If rates go down Sally wins.

BTW, the notional amount of this particular derivative is the principal balance, a virtual number. When folks talk about the trillions of dollars of derivatives floating about, they're adding up these notional amounts, even though they don't actually represent an amount that anybody owes to anybody else. (The interest streams are real obligations, but not the principal.)

 

[1a2b3cppp]

Quote from rew:

Here is what an interest rate swap is:

Harry borrows $10,000,000 from Sally at a fixed rate of 3%.
Sally borrows $10,000,000 from Harry at a variable rate of 3 month LIBOR + 2%.

They agree to pay the principal down according to some fixed schedule. Of course, since they owe each other the same amount of principal no principal actually changes hands. But the interest payments do. The contract involves virtual principal and real interest payments. If rates go up Harry wins. If rates go down Sally wins.

BTW, the notional amount of this particular derivative is the principal balance, a virtual number. When folks talk about the trillions of dollars of derivatives floating about, they're adding up these notional amounts, even though they don't actually represent an amount that anybody owes to anybody else. (The interest streams are real obligations, but not the principal.)

Thanks.

So does that info affect stock prices, or do people trade the interest rates themselves?

 

[rew]

Quote from 1a2b3cppp:

Thanks.

So does that info affect stock prices, or do people trade the interest rates themselves?

Interest rate swaps are mainly of interest to the bond market, where they are used for hedging purposes. (There's actually a lot more money in bonds than in stocks.)

I don't know how much interest rate swaps affect stock prices. I suppose almost anything can affect stock prices at least a little bit, but I don't think that interest rate swaps are of primary interest to stock traders.

 

[Rodney King]

http://www.wallstreetandtech.com/articles/229400082

 

[pma]

Quote from turkeyneck:

It makes you look like a player. That's worth more than $1500.

LOL

 

[1a2b3cppp]

Well I guess if you need that info and want a fancy messaging system then maybe it's worth it.

Sounds like it's unique info you can't really get elsewhere, at least not in one standalone package like that.

I was just wondering if it was like that company that used to sell "dual monitor setups" where it was like two 17" monitors on a stand for $1,000 or something ridiculous like that.

 

[MarketsMove]

People get locked in because of the communication features. You simply need it if you are trading at a bank/fund. Especially for the fixed income calculators

MSG and IB chat are very popular. Launchpad is also a sexy piece of kit. Especially the LP2010 they updated last year.

It is mainly for news, calculators, data and communications. Oh.. and the DeMark indicators are nice if you spend the time learning them.

I think it is mainly an institutional style tool.

You have more money than sense if you get it for private account trading in my opinion. Unless you trade off news then their feed could be woth the cash and the charting is top notch