Interest rate futures

This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.

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October 11, 2018 at 3:03 pm #477349
maxpopper
Member
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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?
October 13, 2018 at 10:45 am #477744
John Moffat
Keymaster
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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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