Hedge interest rate exposure with Eurodollar futures contract (FRM T3-29)

[my xls is here trtl.bz/2p2X0pJ] If we plan to borrow in the future, our exposure (risk) is to higher rates and the trade is a SHORT position in the Eurodollar (ED) futures contract (because higher LIBOR corresponds to lower Quote). If we plan to lend (aka, invest) in the future, our risk is lower rates and the trade is a LONG position in ED futures contract (because lower LIBOR corresponds to higher Quote). Discuss this video in our FRM forum here: trtl.bz/2W2Rky3.

[@vitarkamudra4548]

Your explanation is better than John Hull's!!!!!! Thanks!

[@arjavjain5671]

the excel u use are immaculate ong

[@DROOPSTER4]

The explanation in this video is great!

[@TheOnlyWabagoon]

Great video! Helped a lot!

[@bubblesk5990]

thank you so much! helped a lot :)

[@bionicturtle]

You're welcome! Thank you for watching :)

[@ТимофейКомаров-к8х]

Thank you for this video! May you tell me please is it possible to create a synthetic long swap position by selling a series of Eurodollar futures contracts?

[@andyjogie1158]

do you have an example where you show how to hedge, say a 5 yr fixed to floating swap using Eurodollar futures?

[@georgekiossev7865]

David, basically if we assume/forecast that the Interest Rates will go UP than we go Short the Eurodollar futures, and if we assume/forecast that the Interest Rates will go down with go Long the Eurodollar futures, right?

[@chetweepoo6935]

Yeap. Pricing of the ED futures is 100 - i/r rate

[@LauDonThe5Facts]

whats futures quote