Eurodollar Futures: The Most Traded Futures Contract in the World

Eurodollar Futures

As a fundamental building block of the global financial market, Eurodollar futures and options are the preferred tool of traders to express views on future interest rate moves. With unrivaled book depth and deep liquidity out more than five years, you can effectively target interest rate risks that matter to you.

Learn more about Eurodollar Futures in this video:

Eurodollar Futures are the most traded futures contract in the entire world. Here are just a few reasons why you should consider getting to know the Eurodollar (6E):

Unrivaled Liquidity

Due to the contract’s popularity, Eurodollar Futures traders benefit from book depth that is unrivaled and some of the tightest bid-ask spreads available.

A Global Barometer of Money Flows

Eurodollar futures can give you an idea of how money is moving around the world, what people are borrowing, and what they think about future interest rates. Many traders view Eurodollar Futures as a global barometer of economic health.

Flexible Execution Choices

You can access liquidity for Eurodollar futures 3 ways! By using the central limit order book, blocks, or EFRPs. The central limit order book (CLOB) is a list of bids and offers for Eurodollar futures contracts that are maintained by the CME Group. You can use the CLOB to trade Eurodollar futures contracts electronically. Blocks are large trades that are typically executed over the phone or through an electronic trading platform. EFRPs are electronic requests for quote (RFQ) systems that allow you to request quotes from multiple market makers for large trades.

Fine-Tuned Risk Exposure

With 80 expirations listed at any given time, ranging from 1 week to 4 years, Eurodollar options offer unprecedented flexibility for fine-tuning risk exposures. Eurodollar options are a type of interest rate option that allows you to tailor your risk exposure by specifying the length of time until expiration, from 1 week to 4 years. These options are traded on Eurodollar futures, which are dollar-denominated deposits held in banks outside the United States.

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