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Home / Education / Markets / Interest Rate Futures Overview / Eurodollar Futures

Eurodollar Futures

Eurodollar Futures Ever since World War II the amount of U.S. dollars abroad sharply increased. This meant that foreign banks had U.S. dollars in their custody and their jurisdiction. Today, the eurodollar is similarly not under the jurisdiction of the Federal Reserve because it is a U.S. dollar time deposit held in foreign banks. There are higher margins on the Eurodollar as a result of fewer regulations. A common use for Eurodollar futures contracts is for a company or a bank to secure the current interest rate on money it expects to borrow at a later time.

Eurodollar Contract Specifications
Underlying Unit Eurodollar Time Deposit having a principal value of USD $1,000,000 with a three-month maturity.
Price Quote Quoted in IMM Three-Month LIBOR index points or 100 minus the rate on an annual basis over a 360 day year (e.g., a rate of 2.5% shall be quoted as 97.50). 1 basis point = .01 = $25.
Tick Size
(minimum fluctuation)
One-quarter of one basis point (0.0025 = $6.25 per contract) in the nearest expiring contract month;
One-half of one basis point (0.005 = $12.50 per contract) in all other contract months.
The “new” front-month contract begins trading in 0.0025 increments on the same Trade Date as the Last Trading Day of the expiring “old” front-month contract.
Contract Months Mar, Jun, Sep, Dec, extending out 10 years (total of 40 contracts) plus the four nearest serial expirations (months that are not in the March quarterly cycle). The new contract month terminating 10 years in the future is listed on the Tuesday following expiration of the front quarterly contract month.
Last Trading Day The second London bank business day prior to the third Wednesday of the contract expiry month. Trading in the expiring contract closes at 11:00 a.m. London Time on the last trading day.
Settlement Procedure Eurodollar Futures Settlement Procedure
Position Limits None
Block Minimum Block Trade Minimum
All or None Minimum All or None Minimums
Trading Hours
(All times listed are Central Time)
Open Outcry: MON-FRI: 7:20am – 2:00pm
CME Globex: SUN – FRI: 5:00pm – 4:00pm CT
Ticker Symbol Open Outcry: ED
CME Globex: GE
Exchange Rules These contracts are listed with, and subject to, the rules and regulations of CME.
Source: CME

Eurodollar Facts

Eurodollar futures represent the most traded of the interest rates around the world. Eurodollar futures can be used as a hedging tool for rate fluctuations on Eurodollars themselves. Several trading strategies can be employed with Eurodollar futures including bundles, pack, butterflies and the ability to hold short and long positions.
85% of the Eurodollar futures are traded on CME Globex Platform. This electronic trading offers real time market prices and transparency.
It is important to note that Eurodollars are low risk, but not risk free investments.

Source: CME

Last updated May 2013

Additional Info

Recent Posts on the Eurodollar

  • Trade Spotlight: Spreads – Euro Dollar (August 07, 2018) (8/7/2018) - There is a futures spread trade opportunity in the Euro Dollar market! Get full trade details and learn about seasonal tendencies to watch out for from Don DeBartolo in the Trade Spotlight.
  • Market Spotlight: Eurodollar (2/12/2015) - Ever since World War II, the amount of U.S. Dollars abroad sharply increased. This meant that foreign banks had U.S. Dollars in their custody and their jurisdiction. Today, the Eurodollar is similarly not under the jurisdiction of the Federal Reserve because it is a U.S. Dollar time deposit held in foreign banks.

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Risk Disclosure

THIS MATERIAL IS CONVEYED AS A SOLICITATION FOR ENTERING INTO A DERIVATIVES TRANSACTION.

THIS MATERIAL HAS BEEN PREPARED BY A DANIELS TRADING BROKER WHO PROVIDES RESEARCH MARKET COMMENTARY AND TRADE RECOMMENDATIONS AS PART OF HIS OR HER SOLICITATION FOR ACCOUNTS AND SOLICITATION FOR TRADES; HOWEVER, DANIELS TRADING DOES NOT MAINTAIN A RESEARCH DEPARTMENT AS DEFINED IN CFTC RULE 1.71. DANIELS TRADING, ITS PRINCIPALS, BROKERS AND EMPLOYEES MAY TRADE IN DERIVATIVES FOR THEIR OWN ACCOUNTS OR FOR THE ACCOUNTS OF OTHERS. DUE TO VARIOUS FACTORS (SUCH AS RISK TOLERANCE, MARGIN REQUIREMENTS, TRADING OBJECTIVES, SHORT TERM VS. LONG TERM STRATEGIES, TECHNICAL VS. FUNDAMENTAL MARKET ANALYSIS, AND OTHER FACTORS) SUCH TRADING MAY RESULT IN THE INITIATION OR LIQUIDATION OF POSITIONS THAT ARE DIFFERENT FROM OR CONTRARY TO THE OPINIONS AND RECOMMENDATIONS CONTAINED THEREIN.

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YOU SHOULD CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR CIRCUMSTANCES AND FINANCIAL RESOURCES. YOU SHOULD READ THE "RISK DISCLOSURE" WEBPAGE ACCESSED AT WWW.DANIELSTRADING.COM AT THE BOTTOM OF THE HOMEPAGE. DANIELS TRADING IS NOT AFFILIATED WITH NOR DOES IT ENDORSE ANY TRADING SYSTEM, NEWSLETTER OR OTHER SIMILAR SERVICE. DANIELS TRADING DOES NOT GUARANTEE OR VERIFY ANY PERFORMANCE CLAIMS MADE BY SUCH SYSTEMS OR SERVICE.

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