Options on Eurodollar futures are among the most actively traded exchange-listed interest rate options contracts in the world. The liquidity of Eurodollar options offers traders and hedgers an opportunity to take advantage of their views on the direction of U.S. interest rates. Options on Eurodollar futures provide the ability to limit losses while maintaining the possibility of profiting from favorable changes in the futures prices. All options on Eurodollar futures are American-style, meaning that the options may be exercised on or before expiration. This fact card will give you a quick snapshot of who uses these contracts and why, plus the contract specifications you need to know to begin trading.
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