Investing in Bonds and Hedging with Futures - Bonds and Interest Rates Trading | futures io social day trading
futures io futures trading

Investing in Bonds and Hedging with Futures
Updated: Views / Replies:686 / 1
Created: by CobblersAwls 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

Thread Tools Search this Thread

Investing in Bonds and Hedging with Futures

  #1 (permalink)
Elite Member
London, United Kingdom
Futures Experience: Intermediate
Platform: N/A
Broker/Data: Bloomberg
Favorite Futures: Energies
CobblersAwls's Avatar
Posts: 298 since Jul 2014
Thanks: 1,041 given, 375 received

Investing in Bonds and Hedging with Futures


I've been reading up on the Fixed Income market and was considering different ways to make money from long term investing in Bonds in these current markets. One idea I had for US 10yr Treasury Notes was as follows;

Buy a 10yr Note at auction (non-competitive) which you hold in your brokerage account. The aim is for interest rates to remain low and even potentially fall due to the continued global economic weakness and fear that raising I.R. too soon could hurt the US recovery. This should lead to lower yields and a higher price for the bond.

Ahead of any I.R. announcements and other policy meetings, take out a hedge position in the futures market (ZN) that will counteract any rate hikes so that if the prices of the 10yr fall, then at least your hedge in the futures market will make money. If rates do rise and the price of bonds fall, then you could look to hold the short position in the ZN, rolling the contract at suitable times (when markets are flat/ranging) whilst then holding your bond to maturity so it expires at Par.

If there are no changes or the Fed decide to lower I.R's then you can use a SL to cut the hedge in an attempt to lose less on the hedge than the price at which the bond you hold will appreciate.

Can any bond traders let me know if this is a feasible idea.



Reply With Quote
  #2 (permalink)
Quick Summary
Quick Summary Post

Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.


futures io > > > > Investing in Bonds and Hedging with Futures

Thread Tools Search this Thread
Search this Thread:

Advanced Search

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

Wyckoff Hunting for Great Risk/Reward Ratio w/Gary Fullett

Elite only

Digging into the Details of iSystems w/Stage 5 & iSystems

Jun 5

Similar Threads
Thread Thread Starter Forum Replies Last Post
Does anybody trade Ultra Treasury Bonds Futures? Fat Tails Bonds and Interest Rates Trading 7 June 23rd, 2014 09:44 AM
Hedging Trader J Psychology and Money Management 2 January 8th, 2013 03:59 AM
Brocompany - Trading CFD e-mini/fx/bonds futures with only USD 25 on metatrader Azharr Reviews of Brokers and Data Feeds 3 February 13th, 2012 12:32 AM
Hard Times Investing: Bonds Still Good Bet for Any Portfolio Quick Summary News and Current Events 0 August 9th, 2010 03:20 PM

All times are GMT -4. The time now is 06:16 AM.

Copyright © 2018 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432,
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 2018-05-22 in 0.07 seconds with 19 queries on phoenix via your IP