Where can you trade credit default swaps?

[demoship]

Can you do it at IB?

 

[EquityGuy4321]

No, but you can trade OTM puts there.

 

[scriabinop23]

Quote from demoship:

Can you do it at IB?

but you will be able to trade these soon:

http://www.cme.com/files/creditevent_contractspecs.pdf

Not precisely holdable cds.. but derivative of the overall market.

 

[ChiBondKing]

CDS is an OTC [ over the counter ] traded instrument. The typical trade size in a cds trade done OTC is 10MM. It's *not* for the individual investor [ quite frankly, some of the idiots i've seen at some of the big banks calling our desk shouldn't be trading them either ]..


-c

 

[scriabinop23]

Quote from ChiBondKing:

CDS is an OTC [ over the counter ] traded instrument. The typical trade size in a cds trade done OTC is 10MM. It's *not* for the individual investor [ quite frankly, some of the idiots i've seen at some of the big banks calling our desk shouldn't be trading them either ]..


-c

I've only read about them - so it seems you may know more, but don't they function as typically a binary put option to corporate bonds?

Is that 10mm = total cost of the CDS? Or is that just the notional portion that the CDS insures? What is the typical $$ amount value of smallest increment CDS?