hedging a 10 yr t-note holdig - Bonds and Interest Rates Trading | futures io social day trading
futures io futures trading


Notices

hedging a 10 yr t-note holdig
Updated: Views / Replies:427 / 7
Created: by greedymoron 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 100,000 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
 

hedging a 10 yr t-note holdig

  #1 (permalink)
Trading Apprentice
san francisco, usa
 
Futures Experience: Intermediate
Platform: tos
Favorite Futures: es, zn, ge
 
Posts: 4 since Jan 2018
Thanks: 0 given, 0 received

hedging a 10 yr t-note holdig

New to futures.io. Glad to have become a member.

I am looking for effective way to hedge a 10 yr a t-note position. I expect to hold it for at least 2 years.

thanks

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.

 
  #3 (permalink)
Elite Member
Gits (Hooglede) Belgium
 
Futures Experience: Master
Platform: NinjaTrader, Proprietary,
Broker/Data: Ninjabrokerage/IQfeed + Synthetic datafeed
Favorite Futures: 6A, 6B, 6C, 6E, 6J, 6S, ES, NQ, YM, AEX, CL, NG, ZB, ZN, ZC, ZS, GC
 
rleplae's Avatar
 
Posts: 2,868 since Sep 2013
Thanks: 2,229 given, 4,936 received
Forum Reputation: Legendary


Not sure i understand what it is you are trying to achieve
can you be more specific ?

Buying the T-note and selling the future will only leave you with the commissions
as you will have to roll at least once a quarter...

Unless you can print your own T-notes ,
hedging them would not really make sense...

Am I missing something here ?

Reply With Quote
 
  #4 (permalink)
Trading Apprentice
san francisco, usa
 
Futures Experience: Intermediate
Platform: tos
Favorite Futures: es, zn, ge
 
Posts: 4 since Jan 2018
Thanks: 0 given, 0 received

hedging 10 yr note

Rleplae

I am looking at dividend producing instruments with some protection. Have worked well in the equities world for me. Was wondering if something similar can be done on the bond side

Thx

Reply With Quote
 
  #5 (permalink)
Market Wizard
Houston, TX
 
Futures Experience: Advanced
Platform: XTrader
Broker/Data: Advantage Futures
Favorite Futures: Energy
 
Posts: 2,619 since Dec 2013
Thanks: 2,102 given, 4,541 received
Forum Reputation: Legendary

CME have both a 10yr Treasury Note Future and an Ultra 10-Year U.S. Treasury Note Future. I'm not an expert on these but I understand that the way the delivery mechanisms work that the 10-Year is actually more like a 7-Year while the Ultra 10 is most like a 10-Year. As @rleplae mentioned though only the prompt contract trades so you'll need to hedge with H18 and roll every 3 months.

Reply With Quote
 
  #6 (permalink)
Trading Apprentice
san francisco, usa
 
Futures Experience: Intermediate
Platform: tos
Favorite Futures: es, zn, ge
 
Posts: 4 since Jan 2018
Thanks: 0 given, 0 received

thanks...

Hello SMCJB

Thanks for your reply and pointers to two futures. If I am willing to roll every 3 months, would this clearly provide the price protection for 10 yr t-notes? I will look at some graphs

For many years I have successfully "harvested" SPY dividend with short /es and some other combination of far OTM SPX options. Since SPY and DIA yields have come down significantly, I am looking at other instruments

Do you see any other downside?

Thanks

Reply With Quote
 
  #7 (permalink)
Market Wizard
Houston, TX
 
Futures Experience: Advanced
Platform: XTrader
Broker/Data: Advantage Futures
Favorite Futures: Energy
 
Posts: 2,619 since Dec 2013
Thanks: 2,102 given, 4,541 received
Forum Reputation: Legendary

I don't know enough about bond futures to answer that. If the roll is approximately flat then you can hedge, roll and collect dividends. But if the roll represents the carry between contracts, then rolling will eat your dividends.

Reply With Quote
The following user says Thank You to SMCJB for this post:
 
  #8 (permalink)
Trading Apprentice
san francisco, usa
 
Futures Experience: Intermediate
Platform: tos
Favorite Futures: es, zn, ge
 
Posts: 4 since Jan 2018
Thanks: 0 given, 0 received

hedging 10 yr note

Yes.. good point. I am totally new to bond futures. Need to study the roll.

Other experts on the forums...any opinion/guidance on the roll?

thx

Reply With Quote

Reply



futures io > > > > hedging a 10 yr t-note holdig




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

Mean reversion, trend trading & breakouts: putting it all in context w/Linda Raschke

Elite only
 

Implementing a Practical Process to Improve w/Peter Davies @ Jigsaw Trading

Dec 6
 

How to use the Footprint Tool to Execute Trades w/Brannigan Barrett

Elite only
 

Ask Me Anything (Brokers & Platforms) w/Ilan Levy Mayer @ Cannon Trading

Dec 13
 

Battlestations! Show us your trading desks w/GFF Brokers ($750 in Prizes)

January
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
How do you guys test 10!*10!*10!*15!*10!* strategies? Causality vs correlation little leo The Elite Circle 1 May 2nd, 2016 09:34 PM
History of 30 yr Bond. jsk123 Bonds and Interest Rates Trading 2 March 21st, 2015 11:31 AM
10 YEARS T NOTE FUTURES DAY TRADING MARS Bonds and Interest Rates Trading 30 October 14th, 2014 02:30 PM
The 10 Year Treasury Note tderrick Bonds and Interest Rates Trading 22 March 17th, 2014 02:33 PM
30 yr and 10 yr JTrain Bonds and Interest Rates Trading 2 January 6th, 2011 06:41 AM


Tags
bond futures, cme, dow, futures, information, spx, spy, trading, treasury

All times are GMT -4. The time now is 08:07 PM. (this page content is cached, log in for real-time version)

Copyright © 2018 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 2018-12-08 in 0.11 seconds with 14 queries on phoenix