The CBOE lists the current price for a June 2013 10-Year Treasury future as 132'155. The contract specifications state that the price quote is Points ($1,000) and halves of 1/32 of a point.

Does this mean that if I want to buy one June 10-Year Treasury Future, I would have to pay $132,484.375*?

*That is (132 + 15.5 / 32) * $1000.

  • That is the equivalent exposure, but you would not have to pay that amount. You only need to pay the initial margin - how much that is is likely to be broker dependent. – assylias Apr 10 '13 at 22:51

No, it means that is how much it would cost to accept delivery of that contract.

In your link, look at the next tab "Performance Bond/Margin" and it shows you how much money you ACTUALLY have to put down to establish the contract and gain profits or losses from the fluctuations of $132,484 dollars. The answer as of this time is $1,485 dollars.

Yes, you are reading that correctly, with $1,485 dollars you have secured a $132,484 asset with no evaluation of your credit worthiness.

  • Maybe worth adding that if the contract goes down 0.3% or so there will be a margin call... – assylias Apr 10 '13 at 23:48

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