Since I cannot post to newbie section, I'm posting here.
My long only LTTF system on stocks is flat now so I started studying bond markets. As a test I bought T-bonds (T 3 3/4 08/15/41) with position size only $1k. I just wanted to buy it and hold for couple of days and see how it looks on my statements with commissions and everything. I tried to liquidate the position about two weeks ago with GTC market order. The problem is that I'm still holding that position. Broker is showing bid and ask size of $10k
Is my only option to wait or would it help if I purchase more and then sell the larger position, $10k for example?
My broker is Interactive Brokers if that makes a difference. Their customer support only told me that the dealer does not have to deal...
US T-bonds
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- Roundtable Knight
- Posts: 138
- Joined: Wed Nov 10, 2004 4:36 pm
Going forward you may want to consider going long or short a bond futures contract. I am trading 2Y and 5Y notes with IB, symbols ZT and ZF respectively on ECBOT. These are mini contracts. I have not found a mini-sized 30Y but if you have the capital to trade the full-sized contracts then you can probably find a 30Y. There are no liquidity problems with these futures, at least in my experience.
I do not believe there are mini Treasury futures. ZT, ZF, ZN (10y) and ZB (30y) are the Globex (electronic) codes for the Treasury futures, this is how they're represented on the CME's website.fab1usa1 wrote:I am trading 2Y and 5Y notes with IB, symbols ZT and ZF respectively on ECBOT. These are mini contracts.
Additionally, the CME makes no mention of mini Treasuries, nor have I been able to find a mention of their existance through secondary and tertiary sources; brokers and data providers respectively.
The Globex Treasury futures would appear to have a different (lower) margin requirement through many brokers. But the contract size and thus the BPV remains the same.
The position finally got liquidated yesterday.M20J wrote:I'm pretty sure ZB is the equivalent code for the ECBOT long bond futures and ZN for the ten-year.
Given the very tight bid-offer spreads, you may find the cheapest solution to buy another $9k so that you've got $10k to sell.
Do you think that it should be lot easier to get fills if I buy and sell $10k at a time? It does not even make sense to buy just $1k because the commission for $10k is the same.