100.00 on the chart below represents a rate of zero, 98.00 represents a rate of 2.00%.
To trade this rate higher we’ve shorted 200 contracts at 99.83 representing a rate of 0.17%, contract value $425.00 X 220 equals a position value $85,000.
We’re trading this long-term until we achieve our minimum objective of 5.00%, it’s my believe the fundamentals are so sour in the United States inflation pressures so high that the moment they stop creating money and decide to control inflation rather than lie about it we’ll see a series of rate hikes of 0.50% to potentially 0.75% pushing short-term rates above 2.50% to as high as 5.25% before 2025, Use this chart to monitor this position we’re short at 99.83 looking for the price to drop to 98.00 (2.00%) to as low as 94.00 (6.00%)
I have a very negative long-term opinion of all fiat currencies and cryptos,
Inflation Perception versus Reality
The demise of the dollar and monetization of 30+ trillion in U.S. Federal debt
What Magical Monetary Fairy is going to replace the Fed?
Each 0.01 move in rates equals $25.00 per contract, 0.01% on our position equals $5000.00. If we’re able to capture 2.50% of the move higher from 0.20% to 5.00 our position will generate a gross profit of $1,250,000.
3 Month Rates
3 Month Rate & Contract Price Spreadsheet
3 month rate & contact value
3 Month Rate Contract Value Data
30 day Fed Funds
100.00 on the chart below represents a rate of zero, 98.25 a rate of 1.75%.
To trade this rate higher we’ve shorted 200 contracts at 99.9175 representing a rate of 0.085%, contract value $343.75, position value $68.750.00.
Each 0.01 move in rates equals $41.67 per contract, 0.01% on our position equals $8,334.00. If we’re able to capture 2.00% of the move higher back to 4.00% our position will generate a gross profit of $1,666,800.
Fed Funds contact price & rate
Fed Funds Contract Price & Rate Data
Fed Fund rate & contact value
If you have any questions contact me.
My current date and time is December 4, 2023 5:13 am my hours 7am-7pm Monday-Thursday, 7am-1pm Friday, feel free call me on +1-340-244-4310 or Skype Peter Knight Advisor with any questions, if I’m unavailable please text, Skype or onsite message me.