Interest rate futures contract

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Interest rate futures contract

A futures contract based on an interbank deposit rate or an underlying debt security. The value of the contract rises and falls inversely to changes in interest rates.

Interest Rate Futures Contract

An agreement to buy and sell a debt obligation at a certain date at a certain price. For example, Investor A may make a contract with Creditor B in which A agrees to buy a certain number of B's bonds at a certain date for a certain amount. The value of an interest rate futures contract varies according to changes in the interest rates. For example, if interest rates rise, the value of the futures contract falls because a potential buyer will be able to buy another interest rate futures contract with a better interest rate. See also: Plain vanilla swap.
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Interest Rate futures and options combined reached 25,088,750 contracts surpassing the previous record of 19,417,635 set on May 29, 2013.
UK gilts and interest rate futures dipped after the stronger than expected data, while sterling strengthened to 69.
Gilts and interest rate futures lost ground as hopes of a lower official rate faded.
Sterling and shares showed a muted reaction to the data, but the interest rate futures market - where traders place bets on the direction of rates - surged across the board on the belief rates will stay on hold until next spring, and may even fall.
Yesterday, interest rate futures in the City's money markets rose on the expectation that interest rates may fall despite a surprise fall in unemployment and a strong performance by the stock market.
6 percent of interest rate futures and options trades.
In the 2014 financial year, notional turnover in the Australian dollar interest rate futures market was $42 trillion, ranking it the largest in Asia and among the top five globally.
Interest rate futures, which had been pointing to a likely rate hike in June of next year, rose to suggest less of a chance.
According to interest rate futures, however, con-dence in that view is falling, whereby the rise may occur in 2015 instead.
While the corrupt politicians, a declining auto industry, social unrest, and a fleeing population all played a role, matters worsened crucially in 2009 when the city began trading interest rate futures.
The dealing room also offers students a working virtual platform to explore all of the intricacies of trading, such as foreign exchange, derivatives, interest rate futures, fixed income instruments and equities.