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Interest rate futures

MMax7y ago
Hi There is a characteristic of interest rate futures that they can be used both to hedge risks & to speculate on interest rate movements Does this statement in simple words just mean that futures can be used to hedge currency risk as well as interest rate risk? Or does it mean something else?
John MoffatJohn MoffatTutor7y ago#1
Interest rate futures are nothing to do with currency risk. They are used to hedge interest rate risk and for speculation (although financial managers should only use them to hedge risk, not to speculate). This is all explained in my free lectures.
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