Interest rate futuresForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Interest rate futuresThis topic has 1 reply, 2 voices, and was last updated 9 years ago by John Moffat.Viewing 2 posts - 1 through 2 (of 2 total)AuthorPosts December 5, 2015 at 7:16 pm #287974 kasiaParticipantTopics: 24Replies: 17☆Dear John,Could you please explain to me why this statement is incorrect?‘Borrowers hedging against an interest rate increase will buy interest rate futures now and sell them at a future date’I thought this statement would be true… December 5, 2015 at 8:03 pm #287987 John MoffatKeymasterTopics: 57Replies: 54513☆☆☆☆☆No it is not true.As interest rates increase the futures price falls. Therefore you will sell futures now and buy them back later.You need to watch my free lectures for a detailed explanation.AuthorPostsViewing 2 posts - 1 through 2 (of 2 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In