Short-Term Interest Rate Futures: Basics
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Short-Term Interest Rate Futures: Basics

Intuition Publishing
Updated Sep 24, 2020

Short-term interest rate futures (STIR) contracts are used for hedging and speculation purposes by companies and financial institutions worldwide. The most common is by far the Eurodollar futures contract. We look at STIR futures contracts based on underlying T-bills, time deposits, and overnight rates, and give examples of each.