Outright or Spreads? - Bonds and Interest Rates Trading | futures io social day trading
futures io futures trading


Outright or Spreads?
Updated: Views / Replies:10,640 / 31
Created: by joeyk Attachments:0

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 
Thread Tools Search this Thread
 

Outright or Spreads?

  #31 (permalink)
Elite Member
London/UK
 
Futures Experience: Intermediate
Platform: NT7 and MT4
Favorite Futures: Dax, ES, FX, Gold and Oil but what Bund and Bobl also.
 
BenG's Avatar
 
Posts: 105 since Jul 2012
Thanks: 108 given, 124 received


joeyk View Post
What do spread traders mean when the say I am looking for the mean reversion?

I've found out some information about these spread traders. I know a guy who knows a guy who spread trades at a prop firm.

My friend said that one of the things his trader friend looks at is the Mean Reversion back to 0, and his mate makes around 10 trades on average a day spreading aussie 3y and 10y with ZN and ZB.

Can anyone explain what this means?

I've been looking on the internet with not much luck.

If i can figure this out, i can now put the work into it and become good at spreading.


When you're looking at the yield curve of a spread throughout the day, this changes in various ways. The idea behind mean reversion is that whatever happens the yield curve will come back to the norm. I have not much experience with ZN and ZB, currently focused on Bund, Bobl, Shatz spreads as well as Euribor and Eurodollar. It's easier to understand with Euribor or any other future with a lot of contracts, as you can take a lot of different contracts and plot the yield curve. if you tried throughout the day to follow 7 contracts or so all in the right order. You will notice that prices fluctuate over this curve. At times it flattens, other times it steepens. If the trader knows how the yield curve should generally look like (you could call this position 0), then he/she can take positions when specific contracts are out of place. Spreads all have their own characteristics, but generally they're more forgiving then outrights in my opinion. you just pay more to your broker for it. The more volatile the spread the easier it is to make more trades, the harder it is to be consistent i found. I prefer the boring stuff like Euribor all day. If I can make only 1 tick a day every day I'm happy. I'm in trading for the money not for the excitement, I can go vegas for that. I hope that helps a bit to clarify things.

Don't let money control you, control money!
Reply With Quote
The following 3 users say Thank You to BenG for this post:
 
  #32 (permalink)
Elite Member
singapore
 
Futures Experience: Beginner
Platform: Ninjatrader
 
Posts: 9 since Sep 2010
Thanks: 5 given, 4 received


joeyk View Post
What do spread traders mean when the say I am looking for the mean reversion?

I've found out some information about these spread traders. I know a guy who knows a guy who spread trades at a prop firm.

My friend said that one of the things his trader friend looks at is the Mean Reversion back to 0, and his mate makes around 10 trades on average a day spreading aussie 3y and 10y with ZN and ZB.

Can anyone explain what this means?

I've been looking on the internet with not much luck.

If i can figure this out, i can now put the work into it and become good at spreading.

I was in Propex and traded 2 years there.I can say that his trader friend gave 100% correct information.These 4 products are their main products.And 10yrs traded most.

The actual complete spread is more complex rather than simple spread.They call it structure.But normally they dun enter full structure cos of heavy comms.If 3y 10y side itself can make money and just took profit from it.

Reply With Quote
The following user says Thank You to zh0001ye for this post:

Reply



futures io > > > > Outright or Spreads?

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

Jigsaw Trading: TBA

Elite only

FuturesTrader71: TBA

Elite only

NinjaTrader: TBA

Jan 18

RandBots: TBA

Jan 23

GFF Brokers & CME Group: Futures & Bitcoin

Elite only

Adam Grimes: TBA

Elite only

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
NinjaTrader 7 and spreads boze man NinjaTrader 52 May 22nd, 2017 10:07 AM
commodity spreads - buying from outright future contracts or is it a specific market? durri Commodities Futures Trading 21 December 2nd, 2015 11:13 AM
Credit Spreads Trendi Options on Futures 7 January 29th, 2013 11:49 PM
Spreads experiance ? Mehul NinjaTrader 2 August 31st, 2012 03:35 AM
Credit Spreads Webby Options on Futures 3 May 26th, 2012 10:06 AM


All times are GMT -4. The time now is 06:28 AM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-12-17 in 0.08 seconds with 19 queries on phoenix via your IP 54.82.81.154