T-Note Futures And Their Tricky Prices
Yesterday 10 Year T-Notes futures hit 108 – I got my limit order filled and now I am really kicking myself that I didn’t sell more of these back in August when they were a good deal.
Greenspan (and everybody else in the world) has been saying that the interest rates are going up for a long time. Now it seems like such a sure thing, such an easy way to make money.
Oh well… I did get a nice surprise - trading T-Note futures is a little tricky, the price is reversed. I really don’t know why they reversed the price but they just did. I really should know since I am trading them – but I don’t.
The thing I do know is if the interest rate is going up then you want to be short the T-Note futures because it will be going down. So you sell them first and buy them back later at better price and your profit is the difference.
Another problem with trading T-Note futures is the price. My quotes give me prices like 108.45 but when I order I have to enter prices like 108.015 and then the statements I get have another system like 108 49/64 or something like that. Anyway, all three are different and I once again I should know what they mean I just don’t.
I think they trade in 64 units but I am not sure how to convert any of the different prices so this is one that I just trade at the whole numbers. I either enter a market order or I enter limit orders at 108-000 like I did on my sell.
My market order got filled at 110-18.5 so I am thinking what is 18.5 worth maybe $18 bucks, I don’t know. Well I got my statement today and 18.5 is worth $31.25 per point so I didn’t make $2,031 like I thought I would I got $2,578.13 which was pretty cool.
Anyway, if you’re getting the idea I don’t know what the heck I am doing with this you’re probably right. What I do know is the interest rates are going up and so far that’s the direction they have been going. And unless something really drastic happens they will continue to go up.
So I have limit orders to buy at 107-000 and 106-000 this will close out the two remaining positions I have left.
Greenspan (and everybody else in the world) has been saying that the interest rates are going up for a long time. Now it seems like such a sure thing, such an easy way to make money.
Oh well… I did get a nice surprise - trading T-Note futures is a little tricky, the price is reversed. I really don’t know why they reversed the price but they just did. I really should know since I am trading them – but I don’t.
The thing I do know is if the interest rate is going up then you want to be short the T-Note futures because it will be going down. So you sell them first and buy them back later at better price and your profit is the difference.
Another problem with trading T-Note futures is the price. My quotes give me prices like 108.45 but when I order I have to enter prices like 108.015 and then the statements I get have another system like 108 49/64 or something like that. Anyway, all three are different and I once again I should know what they mean I just don’t.
I think they trade in 64 units but I am not sure how to convert any of the different prices so this is one that I just trade at the whole numbers. I either enter a market order or I enter limit orders at 108-000 like I did on my sell.
My market order got filled at 110-18.5 so I am thinking what is 18.5 worth maybe $18 bucks, I don’t know. Well I got my statement today and 18.5 is worth $31.25 per point so I didn’t make $2,031 like I thought I would I got $2,578.13 which was pretty cool.
Anyway, if you’re getting the idea I don’t know what the heck I am doing with this you’re probably right. What I do know is the interest rates are going up and so far that’s the direction they have been going. And unless something really drastic happens they will continue to go up.
So I have limit orders to buy at 107-000 and 106-000 this will close out the two remaining positions I have left.
