Fed Fund Futures and Options

30-Day Fed Fund futures and options are one of the most widely used tools for hedging short-term interest rate risk. Fed Fund futures are a direct reflection of collective marketplace insight regarding the future course of the Federal Reserve’s monetary policy.

Fed Fund Futures
Product Last Change Chart Globex Vol

Key Benefits

 

  • Deep liquidity to manage risk or express a view on changes in Fed monetary policy
  • Provide a gauge of market expectations about the Fed’s action at future FOMC meetings
  • Offer trading in transparent markets with low transaction costs, daily mark-to-markets and virtual elimination of counterparty credit risk
  • Allow spreading against other short-term interest rate contracts in the CME Group suite of interest rate products, including Eurodollar futures and options

    • CME FedWatch Tool

    • Track Rate Hike Probability

CME FedWatch Tool

Check today’s Fed rate hike probability with the CME FedWatch tool, which uses CME Group 30-Day Fed Fund futures prices to gauge the probability of an upcoming rate hike.

Fed Fund Resources

Fed Funds Futures in a Post-ZIRP World
With the FOMC more actively managing its key target rate, Fed Funds futures have grown dramatically. But how well do Fed Fund futures predict Fed policy decisions?

A Practitioner's Guide to STIR Contract Amendments
Get an overview of the contract amendments made to Eurodollar futures and 30-Day Federal Funds futures effective, November 17, 2018

30-Day Fed Funds Settlement
View the latest final settlement price and implied average daily effective federal funds rate.

Video: Introduction to CME FedWatch
Gain a better understanding of the CME FedWatch tool, which uses 30-Day Fed Fund futures prices to gauge the probability of an upcoming rate hike.

Video: Using the Fed Dot Plot to Inform Your Strategies
Paired with Fed Fund futures pricing, the Fed "Dot Plot" can offer valuable insights for trading.

Related Information

Short-Term Interest Rate Inter-Commodity Spreads (ICS)
CME Globex listed STIR ICS offer efficient execution of a common trading strategy, reduced leg risk on executions and formation of spread liquidity.

STIR Analytics Tool
Analyze the spread between Eurodollar futures and Fed Fund futures over time - from one week to one year.

More in Interest Rates

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