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after i have seen your video , still have trouble understanding the basic nature of interest rate futures…
If i’m not wrong, interest rate futures contract fixes the interest rate on a future loan or deposit. Does it mean that this fixing interest rate is at the start of the period for loan or deposit or during the period of loan or deposit ?
Futures do effectively fix the interest, but only because the gain or loss on the futures ‘cancels’ out the change in the actual interest on the loan or deposit.
The loan or deposit is always at fixed interest, so the interest is ‘fixed’ at the date the loan or deposit starts.
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