Financial futures (interest rate futures) – is a group of financial contracts, which are derivatives of the level of interest rates. The scale of these instruments covers the range from the shortest (92-day rate) of securities to the longest, the 30-year T-Notes. Financial futures are among the most liquid and speculative contracts. Eurodollar Pit (a Eurodollar futures trader understands the contract for 3-month dollar deposit in a European bank) is the largest, the same contract holds an absolute leading position in volume and open interest. “Long” rate traded on the CBOT, Eurodollar – on the CME.

The most popular contracts for 30-year bonds (T-Bonds) and 10-year T-Notes are based on the standard government bond with a coupon of 6% (earlier in inflationary times – 8%) and the nominal value of $ 100,000. Eurodollar contract inherently has a price index, calculated in accordance with the three-month interest rate for deposit of $ 1,000,000 in the European bank.

Tickers: T-Bonds – US, T-Notes – TY, Eurodollar ED. Tick ​​size and quote – “long” bets traded securities in terms of prices received for delivery, tick size in 30-year notes 1/32, from 10-year 1/64. The quotation of 30-year futures 10029 is read as 100 + 29/32, the quotation of 10-year-old reads 112 112 175 + 17.5 / 32. Teak cost respectively $ 1,000 / 32 = $ 31.25 and US $ 1,000 / 64 = $ 15.625.

Eurodollar (active month) has a size of 0.005 teak corresponding $ 12.50. Quote Eurodollar contract 98,145 98,145 reads.

 

[/vc_row]