Friday, April 10, 2009

Trading Bond Futures

Increasing liquidity has been flowing into etf's that short treasuries lately. It's important to note the difference between treasury futures and the regular treasuries. Several managed futures firms buy and sell futures contracts reflecting the future cash price of the bond itself. 5 year 10 and 30 year notes are among the most popular and provide the an advantages trading program. The thirty year bond is the most reactive to fundemental news in the market. The ten year note wil then follow the 30 year bond and the 5 year will follow the ten. This presents not only an easy program for trading treasuries but also an opportunity to hedge your initial positions off each other in the market.

If you dont have a commodity broker or futures broker you will have to open an account with one in order to trade any futures contract. All seriese three licensed brokers are regelated by the NSAD, NFA & CFTC.

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