Trading 13 September 2022

Understanding Eurodollar Strips

One of the key reasons the Eurodollar contract has become so liquid and successful is because of hedgers using the market to hedge against adverse interest rate fluctuations.

Because Eurodollar futures move inversely with interest rates, if you are concerned about rising rates, you can sell Eurodollar futures and if you are concerned about declining rates, you might buy Eurodollar futures.