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Financial future

A financial future is a futures contract on a short term interest rate (STIR). Contracts vary, but are often defined on a interest rate index such as 3-month sterling or US dollar LIBOR.

They are traded across a wide range of currencies, including the G12 country currencies and many others.

Some representative financial futures contracts are

United States




As an example, consider the definition of the International Money Market (IMM) eurodollar interest rate future, the most widely and deeply traded financial futures contract.

Financial futures are extensively used in the hedging of interest rate swaps.

See also