Euro Bund Futures Trading
German Bund Trading Defined and Explained
The Bund futures contract is commonly referred to by German Bund traders as “the Bund”. The Bund began trading in 1998 and remains a heavily traded futures product throughout the world. The Bund future is based on the long-term debt product issued by the Federal Republic of Germany with a term of 8.5 to 10.5 years.
The Bund future is seen by many traders as the benchmark contract for all euro-denominated government debt. The Euro Bund has one of the highest liquidity rates in the European market. This allows for hedging against their domestic debt issuance.
Bund Futures Trading Software
Knowing what is going to happen in the market is critical to profitable Bund trading. VantagePoint software forecasts the Bund Futures high and low for the next day with a very high accuracy, so you'll know where to put your stops and whether to tighten up on them or get out of the trade immediately.
Using forecasts of market trend direction in conjunction with predicted highs and lows greatly increases the potential for successful Bund Futures trades. VantagePoint even allows you to see forecasts and indicators graphically on your computer for ease of use.
Bund Futures Prices/Rates
Bund futures trade at Eurex under the symbol DGB. The contract size is 100,000 Euros, with a minimum tick of 01% that is worth 10 Euros per contract. The Eurex is an all-electronic exchange, so there is no open-outcry trading. The Bund trades in the months of March, June, September and December.