Monthly Archives: May 2015

Leveraged Products

Up to what date before expiry can I sell my warrant/Classic Turbo certificate? All products on equities and indices have their last stock exchange trading day three banking days before the valuation date. Commerzbank offers the opportunity in addition to continue trading the products OTC up to the valuation date. On the valuation date itself […]

Bond Trading 201: How To Trade The Interest Rate Curve

Bond Trading 201: Curve Trading How Traders Exploit Changes in the Shape of the Yield Curve In bond trading 102, we discussed how professional bond traders trade on expectations of changes in interest rates (referred to as “outrights”).   Bond traders also trade based on expected changes in the yield curve.  Changes in the shape of […]

The Greeks: Analyzing Risk for a Spread Position

You made a trade and are now short 5 put spreads. Analyze position risk, using the Greeks. Do you need an introduction to the Greeks? Table The Greeks: Sold 5 put spreads The numbers are per option GreekJul 75 PJul 80 P5-lot SpreadTheta 1.9 cents per day    2.6 cents per day      + 3.5 cents per day Delta -18 cents per point -33 short […]

How Bond Market Pricing Works

How Bond Market Pricing Works By Barry NielsenAAA |  The U.S. bond market is like the sport of baseball – you have to understand and appreciate the rules and strategies, or else it seems boring. It’s also like baseball in that its rules and pricing conventions have evolved over time, and they sometimes seem as […]

The Dollar’s Move Is More Dangerous Than You Think (

The Dollar’s Move Is More Dangerous Than You Think Michael Lewitt: With earnings season here, what’s lost in the “oohing and aahing” over the incoming results is a reasoned look at what’s influencing the dollar’s move and, more importantly, the effect it will have on our wallets, if not today, certainly down the road. Earnings and corporate reports are […]