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Time to Short Eurodollars?

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Chaika

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3 December 2010
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Do you think it is finally time to short the Eurodollar? Seems to be a bit of a pullback at the moment, so perhaps it's a good entry point. The last close was 99.500. I believe the highest this contract can go is 100 so that the most that can be lost by shorting here is 0.500 or 100 ticks at 12.50 USD/tick for a total of 1,250 USD/contract. The contract I'm discussing is the March 2011 expiration (shown below).

Let's make some money or at least not lose too much.
 

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Hi Chaika, interesting first post.

There is a thread in the "International markets" section called "When does the yield on Treasuries blow out" or similar...you might like to read what others have been thinking on rates in the last 2 yearn.

You will see that recently most seem short term bullish (myself included) on yields in general, however I am hesitant to take the trade directly in front of the Fed.

Just a suggestion, feel free to ignore me, possibly a safer move would be a basis trade buy Treasuries short Eurodollars and trade the spread.
 
Thanks for the reply. Pretty quiet forum. My order did not get filled last Friday, so I still have no positions open for the Eurodollar. I'll put in an order today and see if I get a fill.

You may be right, I may be too early which is the same as wrong. The Fed wants interests rate low, so the Eurodollar is not going to trend down. It'll probably just meander until the Fed decides it time to start raising rates.
 
Good post..... 66,000 views on index trading and the lowest risk suggestion cant even congure up 500 views... With you brother, if u wanna increase ur p and lower ur risk even further buy spreads or even better sell the second fly..
 
You are spot on the mark operandi , does not seem to be any discussion at all re Money markets on this forum.

No mention of Aussie bills whatsoever , maybe you need a Spreaders Forum : Curves Bills , Bors et all.

There are plenty of us trading them out there .


Essentially equity outright space here . More the focus of the retail punter .
 
I would be very careful of this trade, if anything I would go long sept GE. Staying long GE 9months out, and rolling forward for the past 3 years would have been extremely profitable; everyone always thinks the market will start to recover in 9months, only to be wrong.

If you want to play the recovery/inflation trade, long a pack of reds, short some pinks
This should start working in 9months :

RE discussion on this forum, yes its very underwhelming now-days. Very retail orientated.
Propboards.com has a good chat-room. I go by the name Elitist Trader there.
 


How'd those long spreads work out for u... like takin candy from a kid huh? Stay long those spreads theres more coming perhaps even sell fly's those bonds just cant seem to rally. Meanwhille 66,000 posts over there trying to figure out which way indexes are going, and not only indexes, the SPI.
 

See u over there brother... btw even the front reds theres so much more to go on those....btw never ventured into the greens
 
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