Best Thread Bund Bobl and Schatz Thread

[gooseman]

It was scary for sure. If all you get is a load of blues on your screen in a market falling like that the instant reaction is to chop out asap, not think 'ooh-this looks like a fat finger' and hold it!

Again the complacency in trading these markets has come from the years of low vol and (falsely) high volumes in the order book. The danger with this thin size is, as arabian says, if some funds etc are forced to liquidate large positions through these markets.....

 

[kobeyashi]

Unless they'd nuked germany or something, the bund would rise on those usually. The other hint was nothing much really happening in bobl/schatz/anything else.

Volume in that minute was 44k so that's 20k worth of stops being taken out as well.

Yes, when I couldn't see any news on Bloomberg/CNBC et al, I looked at the Schatz and it seemed to be normal. I didn't know what to make of that, since like I said, I was in unchartered territory.

Kobeyashi

 

[gooseman]

Fat fingered typing costs a trader’s bosses £128m - Times Online quite an amusing read if you're not the person that put the trade on....

 

[arabianights]

Must admit I'm contemplating staying till 9 to see if I can buy euribor 50 ticks down or something.

 

[Mpoufos]

no the funny thing would be to stop 150 ticks now on the upside in the bunds haha

 

[Directional]

umm, yes - does Mr Fingers now need to buy 25,000 to close?

 

[arabianights]

every bloody central banker is going on about liquidity... something's in the wind.

told you

 

[Futurestrader19]

Eurex have said that the trade stands

how would you work out the loss on this

 

[arabianights]

Eurex have said that the trade stands

how would you work out the loss on this

Here is my patented bull**** approach, which should be at least the right order of magnitude:

44k lots

say average loss of 50 ticks (could be higher!)

= 2 200 000 ticks

= 22 000 000 euros lost

= enough to bring down one or two prop houses. And it's 99% certain at least one or two poor *******s blew up through no fault of their own (apart from inadequete risk management)

hence serious chance of liquidations tonight.

 

[kobeyashi]

So that would mean that loss= No. of ticks X No. of Lots X Value of a tick
ie 150x25000x10=37500000 !
Is that correct?

Kobeyashi

 

[DaxDestroyer]

Decision on FGBL Vola interrupt

28.03.2008 13:53 1


Eurex Management decided the following:

ALL trades in FGBL which were under investigation will stand.
No trades will be reversed

For further inquiries please address to [email protected]

 

[gooseman]

no-need an average price he traded.

 

[Futurestrader19]

So is it closing opening price Vs closing price/10

 

[gooseman]

eh?

 

[gooseman]

depends how many he did at each level.

 

[Futurestrader19]

depends how many he did at each level.

Ohh I see.

I'm just learning all this

 

[Directional]

I hear at least a couple of guys at STA netted more than £1m off that move

 

[grantx]

Not relevant but the best place to address the following.

Trading one's own money through an arcade, is their a minimum amount of trading capital required? Or are the owners looking at a minimum turnover, eg 100 round-trips per day, or even both.

As an extreme, you have £5k, do a 100 round-trips per day (and profitable). My thinking is your capital would be irrelevant here.

Conversely, you have £50k capital but still doing 100 round-trips per day.

Comments welcome.

Grant.

 

[buy 'em]

Yeah that was insane in the bund! I actually was trading euroswiss and short sterling at the time so I didn't get to see it happen.

Did bobl and schatz break hard with it or did they hold their ground?

Electronic Markets- Can't live with em, Can't live without em

 

[kobeyashi]

Hi Buy'em,
No, only the Bunds nose dived. I was watching the bunds and the schatz, and the schatz momentarily (but very slowly) went down but only about 6 ticks I guess.

Kobeyashi