2 YR T-Note Futures Price
The two year Treasury Note futures price is different than the 2-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 2-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 2-year T-note futures contract is one CBOT U.S. Treasury note having a face value at maturity
of $200,000. So each 1 point move equals $2,000. 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
2-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 2-year T-note product
then futures may be for you. If you are a speculator with a limited amount of risk capital then 2-year T-note options are
a better way for you to invest in the 2-year T-note market.
Click here to view the current futures price of the 2-year T-note.