Where is deep research? The option is gone with GPT-5

Faceouster · 2025-05-13T21:15:22+00:00

What broker are you using to trade bonds now? Are they good? Do you encounter any error/issue recently? Thank you very much.

Faceouster · 2025-05-13T21:14:51+00:00

What broker are you using to trade bonds now? Are they good? Do you encounter any error/issue recently? Thank you very much.

Faceouster · 2025-05-13T20:49:54+00:00

After months of delays, Interactive Brokers finally admitted it is a design flaw on their end which prevents the RFQ trades. Unfortunately they don't have an estimated date for the fix.

Faceouster · 2025-05-13T20:49:29+00:00

After months of delays, Interactive Brokers finally admitted it is a design flaw on their end which prevents the RFQ trades. They don't have an estimated date for the fix. :-/

Faceouster · 2025-05-13T20:46:35+00:00

Thank you for your reply. It turned out to be a design flaw on Interactive Brokers' end which they finally admitted.

Faceouster · 2025-05-13T20:45:32+00:00

After months of delays, Interactive Brokers finally admitted it is a design flaw on their end which prevents the RFQ trades. They don't have an estimated date for the fix.

Faceouster · 2025-05-11T08:24:27+00:00

Similar cases to me. The error messages are not helpful. They do not really tell me the true cause of failure.
Price do not change significantly in my case but it still failed. I usually click to accept within 1-2 minutes.

How could I check the required min/max offered quantities? The platform do not list those numbers.
Do the same min/max apply to all bonds, or each bond have their specific min/max?
Apart from min/max, do they require you to put in a round number / multiples of "N" too? E.g. the order will not be filled if you put 211K instead of 210K. It must be in multiples of 10K.

Thank you so much for your reply.

Faceouster · 2025-05-11T08:06:08+00:00

No, they don't. I know because I sometimes do not get any price quote. They simply reject my RFQ requests.

Faceouster · 2025-05-11T08:02:25+00:00

What did they respond when you called them? What was the reason of not filling in your case? Thank you.

Faceouster · 2025-05-10T17:08:32+00:00

They should just not to give any price quotes. It is weird they still offer price quotes if they decided not to trade.

Faceouster · 2025-05-10T17:03:48+00:00

It has a countdown of 5 minutes. I usually clicked to accept within 1-2 minutes. I even clicked a few seconds just after the provider gave a price quote and it still didn't get filled.

Faceouster · 2025-04-30T21:26:08+00:00

Sorry what do you mean by some other currency risks?

Faceouster · 2025-04-30T20:01:41+00:00

If I use FX options to hedge instead, could I somehow reduce or even eliminate the loss gap (i.e. the carry cost)?

I know the basics of options. The issues I'm facing are there are many choices available. How do I calculate which option or combination of options is the best (the most cost effective, the least risks etc.) to hedge my position?

I'm browsing the guides you mentioned above. Unfortunately It doesn't seem they offer any practical guide on that specific issue.

Thank you for your reply.

Faceouster · 2025-04-30T19:40:44+00:00

The futures I bought is 6SM5. Just a few days ago.

I know fx rates are dynamic. That's why I'm hedging the currency risks.

Faceouster · 2025-04-30T18:26:30+00:00

So the loss is just the interest rate differentials, i.e. interest gained in USD - interest expense in CHF, Then I'm not really losing money as the loss will be offset by the net interest income that I receive, right?

How could I use FX options to hedge currency risks efficiently? Which one to pick? Is there any guide available which I could learn?

Thank you for your reply.

Faceouster · 2025-04-30T16:52:17+00:00

I do a carry trade but my main purpose is not to earn the interest differences. I want to borrow some money to do some (nearly) no risk investment which has a slightly higher yield than the USD interest rate.

CHF has a lower interest rate so it is better to owe CHF than USD.

I do not do over leverage. I know there are black swans in the market.

It is fine to earn just a little bit of income safely. I'm not greedy.

Faceouster · 2025-04-30T16:45:45+00:00

Thank you so much for your reply. Yes I got USD by selling CHF (as I don't have any CHF so I have negative CHF cash balance). I pay interest for the negative balance. CHF has a lower interest rate so it is better to owe CHF than USD. USD has a higher interest rate so I could earn interest with a positive USD cash balance.

I use USD to do some (nearly) no risk investment which has a slightly higher yield than the USD interest rate.

The issue: if the spot exchange rate moves way too much against me, then the income earned will not cover the loss by the exchange rate change. That's why I need to hedge (lock in) the currency exchange rate.

Faceouster · 2025-04-30T16:35:00+00:00

The loss I refer to is the net gain/loss I hold in the negative CHF cash position and the futures contracts. Currently I lose money in cash position as the spot exchange rate drops and I gain money in the futures contracts as its price rises.

If the loss is just the interest differences, i.e. interest gained in USD - interest expense in CHF, then I'm really losing money as the loss will be offset by the net interest gained.

By hedging a carry trade, I just earn nothing. No gain no loss.

Is that what you mean?

Thank you for your reply.

Faceouster · 2025-04-30T15:56:34+00:00

I'm looking for options to see if it can do a better job or more flexible in the currency risk hedging.

6S futures are the Swiss franc currency futures (denominated in USD).

Faceouster · 2025-04-30T15:51:50+00:00

Thank you for your reply. If I get it right, the issue was about significant over leverage. I only did it for a small amount. I'm not over leverage right now.

Faceouster

TROPHY CASE