Ultra 10-Year Note (UB) Futures Contract Specifications
Understanding the contract specifications for Ultra 10-Year Note (UB) futures (UB) is essential for effective trading and risk management. This comprehensive guide covers all the critical details you need including tick values, contract sizes, trading hours, and position sizing strategies to help you trade Ultra 10-Year Note (UB) futures successfully.
What Are Ultra 10-Year Note (UB) Futures?
Ultra 10-Year Note Futures (UB) provide traders with exposure to the 10-year segment of the U.S. Treasury yield curve. These contracts allow for speculation on interest rate movements, portfolio hedging, or yield curve trading strategies.
The Ultra 10-Year Note (UB) futures contract (UB) is traded on major exchanges and provides traders with opportunities to profit from price movements in the interest rates market. Understanding the contract specifications is crucial for proper position sizing and risk management when trading these instruments.
Contract Size
Contract Size: $100,000 face value
Example: This contract size allows traders to gain exposure to interest rates with controlled leverage and risk. Understanding the contract size is fundamental to calculating your position size and managing your trading capital effectively.
Tick Value and Increment
- Tick Size: 1/32 of a point
- Tick Value: $31.25 per tick
- Point Value: $1,000 per point
These specifications make Ultra 10-Year Note (UB) futures suitable for traders seeking exposure to interest rates markets.
The tick value represents the minimum price fluctuation, which directly impacts your profit and loss calculations. Knowing these values is essential for setting stop losses and calculating risk per contract.
Trading Hours
Ultra 10-Year Note (UB) futures trade with extended hours, providing flexibility for traders in different time zones and allowing you to react to global market events.
- Exchange: CBOT
- Trading Hours: Sunday to Friday, 5:00 PM to 4:00 PM the following day
- Time Zone: Central Time (CT)
Trading Symbol
Platform Symbol: UB
Margin Requirements
To trade Ultra 10-Year Note (UB) futures, you'll need to meet specific margin requirements. Margin requirements can vary based on your broker and account type.
Initial margin is the amount required to open a position, while maintenance margin is the minimum account balance needed to keep the position open. Check with your broker for current margin rates.
Why Trade Ultra 10-Year Note (UB) Futures?
- Direct exposure to the benchmark 10-year Treasury note segment
- High liquidity and tight bid-ask spreads
- Effective hedging tool for fixed income portfolios
- Extended trading hours covering all global market sessions
- Standardized contract specifications and regulated exchange
Risk Management for Ultra 10-Year Note (UB) Futures
Effective risk management is crucial when trading Ultra 10-Year Note (UB) futures. Here are key considerations:
- Position Sizing: Never risk more than 1-2% of your account on a single trade. Use our position size calculator to determine the appropriate number of contracts.
- Stop Loss Orders: Always use stop loss orders to limit potential losses. Calculate your stop loss distance based on the point value and tick size.
- Account Balance: Ensure you have adequate capital to meet margin requirements and handle drawdowns. Consider starting with micro contracts if you're new to futures trading.
Position Sizing for Ultra 10-Year Note (UB) Futures
Proper position sizing is crucial when trading Ultra 10-Year Note (UB) futures. Use our position size calculator to determine the optimal number of contracts based on your risk tolerance and account size.
Position Size Calculator Example
For Ultra 10-Year Note (UB) futures (UB):
- Tick Size: 1/32 of a point
- Tick Value: $31.25 per tick
- Point Value: $1,000 per point
If you want to risk $500 with a 10-point stop loss:
Risk per Contract = Stop Loss in Points × Point Value = 10 × 1,000 per point = $10
Maximum Contracts = Risk Amount ÷ Risk per Contract = $500 ÷ $10 = 50 contracts
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