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INTEREST RATES
An Interest Rate Future is a futures contract with an interest-bearing instrument
as the underlying asset. Since the introduction of financial futures at the Chicago Mercantile Exchange in 1972, the importance
of futures in transferring financial risk has been proven by the explosive growth in the market. The vast array of CME interest
rate products allows professionals to manage interest rate risks ranging from one day to thirty years.
Investors can use interest rate futures contracts to hedge against interest
rate risk, or interest rate futures can be used to speculate and, by incurring a risk, attempt to profit from rising
or falling interest rates. Whether you are a speculator or a hedger, this section on interest rate futures contains a wealth
of valuable information. Before trading interest rate futures and options you should contact an experienced broker to discuss market risk and opportunities.
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