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Federal Reserve -- Ben Bernanke takes center stage and just about.
230 this afternoon and the potential for a fed -- -- is breathing new life into Fed Funds futures contract.
That's out of a whole deal Jeff Flock in the -- out to see any -- This is where they make give bets at the Simi guys on futures this is seeing eurodollar this is because it's essentially -- European futures and then we've got the Fed fund futures contracts futures and options -- -- by the way I've got Eric Wilkinson with me longtime trader over here yeah how many years.
About fifteen years I was here in the old room since has -- 1995.
-- You got out because it's hard when that fed doesn't move interest rates in five years it's tough to make money.
It is tough to make money -- here I mean when the rates -- flat the only thing you can really do to make money is sell these spreads and then the risk reward just isn't there because of that it is something that happened that -- gonna go against a dramatic look at the current month and we break these numbers after the numbers are hard to understand that's why -- supposed to always come to you for -- some group guidance on this.
Essentially zero chance -- there's going to be any kind of a move this meeting.
-- we go all the way out to January 28 -- when he fifteen.
Before you get more than a 50% chance of a rate cut.
Absolutely and right now you know all the market for the next year and a half like you said is still showing that quantitative easing is going to be in their suppressing this market and the market should be right around 9975.
Which shows a 25 basis point.
Rate which is point 25 percentage points right now we're at 999.
Herd -- B 990 site and now you know that's our front month that's mean so that means it's ten basis points which is fifteen basis points below.
What the rate should be what -- -- volumes like -- -- we had an active interest rate environment up a look at this -- right now I don't want sassy tumble weeds.
That the volumes are a little bit because of the talk of a move but what was it like you're guilty.
We were elbow to elbow in here and -- -- days like today for the Oakland C coming into this.
It would be crazy in here I mean a lot of -- we'd probably be allowed to spit on the floor right now hundred cows there contracts -- He easily a 100000 contracts a day would be treated in this -- on an apple and see -- or any kind of major market move and volume right now volume right now is probably less than 101000 contracts and that's going out two years now back in the day we wouldn't trade.
More than a year out and we would still have you know 10050000.
Contracts traded today in their interest and well you heard what it used to be like back in the day.
They still got room in this -- If he gets crazy with a fed you never know.
Could be all back but Eric right now actually bring people back into the -- if we started getting some -- -- -- fed -- person you know.
Talk about this easing off of the policy we definitely see people come back but for now -- trade corn.
For right now I'm going to be touring -- and other commodities absolutely Erik always appreciate the wolfman is back.
In the Fed fund futures hit.
Thank you Jeff Jeff Flock all right.
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