interest-rate futures

A form of financial futures that enables investors, portfolio managers, borrowers, etc. , to obtain protection against future movements in interest rates. Interest-rate futures also enable dealers to speculate on these movements. In the UK, interest-rate futures are dealt in on the London International Financial Futures and Options Exchange, using contracts for three-month sterling, eurodollars, euros, etc. , in the short term and long gilts, US Treasury bonds, euro bonds, etc. , in the long term. For long gilts, for example, the standard contract is for £50, 000 of nominal value and the tick size is 0. 01% of the nominal value. See hedge

Big dictionary of business and management. 2014.

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