Spread trading in Meta Trader - page 105
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Information for thought.
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UK long-term government bond futures contract (EURONEXT: GILT-LONG) / LONG-GUILT FUTURES (LIFFE)
GLONG
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The UK government securities market began its history in the seventeenth century and is now one of the major debt markets worldwide. Throughout its existence, the British Government has never failed to pay interest income and principal on issued obligations. The name 'gilts-edged', or 'gilts' for short, reflects their main characteristic as an investment vehicle - first-class reliability. UK government securities have the highest credit rating.
In recent years, bonds have been issued mainly for terms of 5, 10 and 30 years. Long-term securities are those with a maturity of 15 years or more. The coupon rate on them reaches 6%. It is fixed when the bond is placed and the income is paid twice a year.
Peculiarities of contract trading
Long-term bonds are a popular investment instrument. For a long time, the exchange rate of the pound sterling has been stable on the foreign exchange market, which has made debt securities an attractive vehicle for investing money. Gilts are also an excellent analytical tool. Their dynamics help gauge investors' attitudes to the prospects of the British economy. If investors believe that the UK economy is growing and that the interest rate hike by the Bank of England is imminent, it makes Bunds less interesting and causes the price of Bunds to exhibit a downtrend on the market. Correspondingly, their yields go up. If we see that the yields on gilts start to fall and their prices rise, it means that investors are waiting for the rates to fall. This means that the economy is starting to move into a downward business cycle.
British debt securities are instruments issued in sterling, so an increase in demand for bonds leads to purchases and consequently an increase in the British currency. In addition, quotations are reacting strongly to macroeconomic data out of the UK. Good news often causes a downward trend on the charts, whereas bad news cause a downward trend.
It is only natural that the dynamics on the bond market are directly related to the price dynamics on other financial market segments. If investors show an increasing interest in buying shares of UK companies then we will surely see a flow of funds from the bond market into the equity market. When stock market indices rise, bond prices fall and yields rise. In other words, equity indexes and debt price movements are in opposite phases. However, this is only true in the short term. In the long term, they move in parallel, often a reversal in the Treasury debt market predicts a similar trend in the equity market, only with a time lag of a few months.
UK long-term government bond futures contract trading on BrocoTrader.Ticker: GLONG
I have received several questions about the B-Band turkey in my mailbox. In order not to bore you several times, I will answer all of them here at once.
I insert this indicator manually. It is done like this:
We make the window of spread indicator as wide as possible (i.e. increase the border of the window).
After that, drag and drop the Bollinger Bands indicator out of the INDICATORS section ( using the mouse, not the click - strictly !!!!!), so its window would fully fit the window of our spread (delta) indicator.
Then, in the "APPLY TO" window set the FIRST INDICATORS DATA / OK,
and we get it!
See picture -
Food for thought :
Fuel oil, oil ...
Time to take it, yeah
Пора брать, ага
Have you noticed that your indicator is overdrawing?
По логике построения не должен, специально не следил.
I put levels on the chart. The Expert Advisor enters using them.
When I entered, the histogram crossed one of them and after a few bars the indicator showed that it did not reach it. In the logic of the indicator the scale turns out to be dynamic?
Хм, странно. Предполагаю, что проблемы с синхронизацией, то есть на одном инструменте появился новый бар, а на втором - еще нет, в этот момент синхронизация говорит, что цена второго равна close[1], так как бар считается пропущенным. Спасибо за замечание, подумаю, как можно исправить это...
Here's another question. Is it possible to trade the spread at Broker B. on the real? Does it not give "different" quotes from the demo?