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What are Eurodollar Futures?

April 26, 2017eurodollar Futures

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What are Eurodollar Futures?

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Eurodollars are U.S. dollars deposited in commercial banks outside the U.S. Eurodollar Futures are futures contracts designed to reflect market expectations for interest rates on three-month Eurodollar deposits for specific dates in the future. 2) How are Eurodollar Futures settled? Eurodollars are cash settled as determined by subtracting the three-month LIBOR from 100 on the last trading day. 3) What is the last trading day for Eurodollar Futures contracts? Eurodollar Futures cease trading on the second London bank business day prior to the third Wednesday of the contract expiry month. Trading in the expiring contract closes at 11:00 a.m. London Time on the last trading day. If it is a bank holiday in New York or Chicago, trading terminates on the first London bank business day preceding the third Wednesday of the contract month. If it is an Exchange holiday, trading terminates on the next preceding business day. 4) What is the contract size for Eurodollar Futures? Eurodollar Time De