10 YR T-Note Futures Price
The ten year Treasury Note futures price is different than the 10-year T-note price in the
cash (physical) market. Generally, the price of a commodity for future delivery is higher than the cash price due to carrying
costs. This is called contango. The opposite of contango is backwardation. Backwardation is when the price of a commodity
for future delivery is lower than the cash price. Backwardation is normal in a “seller’s market.”
When you trade 10-year
T-note futures, your futures price depends on where you get into the market. After you post your initial margin, your profit
or loss depends on where you enter and exit the market (minus transaction costs).
The size for one 10-year T-note futures contract is one CBOT U.S. Treasury note having a face value at maturity
of $100,000. So each 1 point move equals $1,000. As the market moves your account value adjusts. If your account value drops
below the maintenance margin a margin call is due. A margin call can be met by offsetting positions or adding money to your
10-year T-note futures contract trading can be both highly profitable and extremely risky because
of leverage. Leverage is the ability to control a large quantity of a commodity for a very modest investment. That investment
is called margin. Be certain you understand the risk of trading futures on margin before you consider opening a futures
Trading futures is like driving a car without insurance. You save the insurance premium, but if
you crash you will wish that you were insured. If you have very deep pockets or deal with the physical 10-year T-note
product then futures may be for you. If you are a speculator with a limited amount of risk capital then 10-year T-note
options are a better way for you to invest in the 10-year T-note market.
Click here to view the current futures price of the 10-year T-note.
Click here to contact a commodities broker with experience in the 10 YR T-Note market.