This chart for the daily Eurodollar futures is also extremely liquid, often with more than 1.5 million contracts of Open Interest. The margin requirements are fairly low, being roughly comparable to the treasury futures. I know very little about the Eurodollar, but watch its movements nevertheless. It apparently represents the interest rates paid by banks on CD's outside the United States on US Dollar deposits. It tends to mirror the activity of the LIBOR futures, but is much more liquid than LIBOR. I am also hoping that there will eventually be an ETF to trade the Eurodollar (not the Euro or EURUSD Forex) futures. The Eurodollar is an interest rate futures vehicle,
not a currency trade. Here is what the CME website says about the Eurodollar:
The Eurodollar futures contract is the most widely traded and versatile interest rate futures product in the world. It provides a valuable, cost-effective tool for hedging interest rate fluctuations on Eurodollars – U.S. dollars deposited in commercial banks outside the United States. Eurodollar deposits play a major role in the international capital market, and have long served as a benchmark interest rate for corporate funding.
This chart for the daily Eurodollar futures is also extremely liquid, often with more than 1.5 million contracts of Open Interest. The margin requirements are fairly low, being roughly comparable to the treasury futures. I know very little about the Eurodollar, but watch its movements nevertheless. It apparently represents the interest rates paid by banks on CD's outside the United States on US Dollar deposits. It tends to mirror the activity of the LIBOR futures, but is much more liquid than LIBOR. I am also hoping that there will eventually be an ETF to trade the Eurodollar (not the Euro or EURUSD Forex) futures. The Eurodollar is an interest rate futures vehicle, not a currency trade. Here is what the CME website says about the Eurodollar:
