How Do I 'Short' Treasury Bonds?

[Kenji4861]

I keep hearing treasury bonds will be worth nothing next year and to 'short it'.

I signed up for an account to short and funded it with money at Scottrade.

I just don't know which ticker I should be shorting.

Any help for an amateur?

 

[wedi42]

if you don't know, don't do it.

 

[Argo]

Wait you want to short the only security backed by US government?

 

[s0ssos]

wow. how ridiculous. "what's the ticker symbol for treasury bonds?"

 

[venkman]

oh dear.

 

[dbk]

.

 

[cKGunslinger]

uhh..

 

[TallBill]

FAIL

 

[George P Burdell]

EPIC FAIL

 

[TallBill]

HEROIC FAIL

 

[paulney]

I wish brokerages would not open an account without a mandatory basic education course.

 

[Special K]

OP, try posting your question here:

Fatwallet Finance

I'm sure they would be more than willing to help.

 

[Epic Fail]

Try looking up some bond ETF, you can actually short them and they do have ticker symbols.

 

[Epic Fail]

Originally posted by: Argo
Wait you want to short the only security backed by US government?

Even without default risk, Treasury bonds aren't risk free, you can lose values when interest rates spike up.

 

[Kenji4861]

Yes, that's what I mean, a ticker symbol like GLD / PBW .. there must be one for Bonds.

Thanks Epic Fail!

 

[Kenji4861]

TIP / TLT / IEF

Looks like I already missed the ride down.

http://finance.google.com/finance?q=TIP

 

[Double Trouble]

On a serious note: please do some reading to get up to speed on investing before you commit your money to it just based on the advice of someone. Try the Motley Fool site, there are hundreds of sites that will help get you started. If you're asking about ticker symbols for treasury bonds, you should not be trading, much less shorting anything.

 

[McCarthy]

How do I short change?

I have all these pennies...

 

[sdifox]

Originally posted by: paulney
I wish brokerages would not open an account without a mandatory basic education course.

What? And give up the anal raping they deliver to the idiots? No way.

 

[thespeakerbox]

Originally posted by: sdifox

Originally posted by: paulney
I wish brokerages would not open an account without a mandatory basic education course.

What? And give up the anal raping they deliver to the idiots? No way.

So true. I love hearing about people who complain about losing 14 points on a 200.00 bet but have no clue htat they just paid someone 12.95 to lose money. Idiots give their money away!

 

[Crusty]

:laugh:

 

[WinstonSmith11]

I am not sure what Kenji4861's actual intent is; however, the raucous he raised may not be entirely valid.

Shorting a risk-free treasury at this point may not be the worst option for generating investable cash flow. A quick look at the yield curves will show that a prudent investment at this point should easily be able to cover the cost of the short interest due. However, if he shorts treasuries and invests the cash flows unwisely, he may (as with all bad investment decisions) well lose more than he anticipated.

-Winston

 

[mshan]

"A fool and his money are soon parted"

I hope OP at least realizes that his potential losses are limitless with shorting, and will be magnified greatly if he uses a margin account to do so.

If you buy something and it goes to zero, your loss is 100%.

If you borrow shares and eventually have to return them by buying on the open market... :roll:

 

[Cattlegod]

Originally posted by: WinstonSmith11
I am not sure what Kenji4861's actual intent is; however, the raucous he raised may not be entirely valid.

Shorting a risk-free treasury at this point may not be the worst option for generating investable cash flow. A quick look at the yield curves will show that a prudent investment at this point should easily be able to cover the cost of the short interest due. However, if he shorts treasuries and invests the cash flows unwisely, he may (as with all bad investment decisions) well lose more than he anticipated.

-Winston

10 bucks says this is Kenji registered on a second account and pulled the post off of the forum he got this idea from!