ZN futures - can I buy contracts that expire in 6 or more months?

B

blink18

I don't have much experience with futures, but I was looking at CME's website on how much volume is traded with every expiration month, and it looks like there is no volume for ZN/SEP2020 and ZN/DEC2020.
https://www.cmegroup.com/trading/interest-rates/us-treasury/10-year-us-treasury-note.html

I tried to buy 1 contract ZN/DEC2020@ECBOT on my paper trading account at IB and nothing happened. Market order stayed in blue color (transmitted, not yet acknowledged).

What is going on? I thought you can buy every expiration month available with high liquidity? I also tried to buy 1 ZN/JUN2020@ECBOT and this one was filled immediately!
 
blink18 said:
I don't have much experience with futures, but I was looking at CME's website on how much volume is traded with every expiration month, and it looks like there is no volume for ZN/SEP2020 and ZN/DEC2020.
https://www.cmegroup.com/trading/interest-rates/us-treasury/10-year-us-treasury-note.html

I tried to buy 1 contract ZN/DEC2020@ECBOT on my paper trading account at IB and nothing happened. Market order stayed in blue color (transmitted, not yet acknowledged).

What is going on? I thought you can buy every expiration month available with high liquidity? I also tried to buy 1 ZN/JUN2020@ECBOT and this one was filled immediately!
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I'm not entirely certain but for futures that trade on quarterly cycles, like ES or ZN, I think you can only trade the FRONT MONTH.
 
blink18 said:
I don't have much experience with futures, but I was looking at CME's website on how much volume is traded with every expiration month, and it looks like there is no volume for ZN/SEP2020 and ZN/DEC2020.
https://www.cmegroup.com/trading/interest-rates/us-treasury/10-year-us-treasury-note.html

I tried to buy 1 contract ZN/DEC2020@ECBOT on my paper trading account at IB and nothing happened. Market order stayed in blue color (transmitted, not yet acknowledged).

What is going on? I thought you can buy every expiration month available with high liquidity? I also tried to buy 1 ZN/JUN2020@ECBOT and this one was filled immediately!
More...

If there is no volume, you won't get a fill.

If you put a bid or ask out there at a price point on ZN December, someone may take your trade. Then you will have added liquidity. :)

zn2020.JPG


To answer your main question, just look at the specs...

zn2020statsmonths.JPG


You see how you have a list of 3 quarterly months?

Specs, specs, specs.

zn2020stats.JPG
 
schizo said:
I'm not entirely certain but for futures that trade on quarterly cycles, like ES or ZN, I think you can only trade the FRONT MONTH.
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Incorrect. You can trade contracts which are not the front month. But you need a counter party. If there isn't a counter party you won' be able to close a deal.
 
HobbyTrading said:
Incorrect. You can trade contracts which are not the front month. But you need a counter party. If there isn't a counter party you won' be able to close a deal.
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Hmm, the bond market being much larger than the stock market, it's hard to believe there would not be a counterparty. Anyway, I've always traded the front month, so this is all new for me. Speaking of which, why would anyone want to trade a back months anyway? They're illiquid and you most likely will end up paying a higher premium. Even worse, they don't move tick for tick in tandem with the front month contract.
 
schizo said:
...Anyway, I've always traded the front month, so this is all new for me. Speaking of which, why would anyone want to trade a back months anyway?...
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You just answered your own question. Because everyone thinks like that..."Why would I want to trade a back month" (and you mean forward month, but we get it.).

So that's why. Everyone thinks it is illiquid, so they don't trade it, so it becomes illiquid. Self-fulfilling.

Don't you dare say that to the energy markets though, like CL. :)

Clvolume2020.JPG


Volume pR0n!
 
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