Before I go on to preview next weeks market I though I would make an entry about Fridays price action in the Bund. The market had been relatively quiet for most of the morning, the range was an average 30 ticks on volume of about 265k lots by 11:00 gmt. This is relatively light for the bund, but with a lack of any decent economic news, to be expected. Then at 11:17 gmt the Bund fell out of bed in the biggest way I have ever seen. It dropped 172 ticks in 4 seconds!!!. I have never seen the Bund do this and no other instrument really responded because it all happened so quickly. This was a bigger move than those of the Sept 11th attacks. The exchange closed the contract for 2 minutes and when it re-opened it was only 20 ticks lower than where it had been before the strange move. Given that the Bund is one of the most liquid futures contracts this has all the hall marks of a fat finger or error trade to me. The total volume transacted during that minute was 44k lots, but some of that would have been other electronic stops all tripping over each other. All in all a quite extraordinary move.
I have decided to dabble into the world of blogging and have decided to do one focused on my interest in trading futures. I don't know if I will have enough time or material to write this everyday. However I want it to provide me with a tool to order my thoughts about my trading, and the markets. I hope it will also prove useful and informative for others.
I was inspired to do this because I read many really good blogs that cover trading and the economy. Although I haven't come across many that focus on the fixed income markets. I am not offering any advice or recommendations about trading. Its more about making observations and sharing them with others.
I mainly trade the Bund Future that is listed on the Eurex Exchange. I do this with my own capital and have been doing so for a few years. The tools I use for this are Trading Technologies X-Trader, E-signal and Market Delta.
As this is my first post I am going to publish this and see how it all looks before I start rambling on about the Bund. Also as I have never written a blog or indeed anything much since my school days my style may not be up to the high standards I have seen from others, but this should evolve and improve with time.
