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  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: UPDATE cache_filter SET data = '<p>Traders can buy and sell <a href=\"http://www.mysmp.com/futures/futures-contract.html\">futures contracts</a> on the <a href=\"http://www.mysmp.com/bonds/federal-funds-rate.html\">fed funds rate</a>&nbsp;to hedge against interest rate risk.&nbsp; Traders will buy the fed fund futures if they believe the fed will lower the federal funds rate and visa versa if they believe the fed will increase the fed Traders can buy and sell <a href=\"/futures/futures-contract.html\">futures contracts</a> on the <a href=\"/bonds/federal-funds-rate.html\">fed funds rate</a>&nbsp;to hedge against interest rate risk.&nbsp; Traders will buy the fed fund futures if they believe the fed will lower the federal funds rate and visa versa if they believe the fed will increase the fed funds rate.&nbsp; He explains how to read the price quoted for the fed funds futures contract.&nbsp; One can use the fed funds futures to predict <a href=\"/bonds/federal-reserve-bank.html\">federal reserve</a> interest rate policy.&nbsp; For example, if the current fed funds rate is at 2% and the fed funds futures are quoted at 97.5, this would indicate that traders expect the fed to drop interest rates by 50 <a href=\"/bonds/basis-points.html\">basis points</a>, or .5%.&nbsp; Remember, this contract trades at a price which is discounted by an amount of the fed funds interest rate expectation.&nbsp;</p>', created = 1560870959, expire = 1560957359, headers = '', serialized = 0 WHERE cid = '1:a23313db62aa9868fc8d2529e5d811db' in /var/www/html/mysmp/includes/cache.inc on line 109.
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Fed Funds Futures

See video

Traders can buy and sell futures contracts on the fed funds rate to hedge against interest rate risk.  Traders will buy the fed fund futures if they believe the fed will lower the federal funds rate and visa versa if they believe the fed will increase the fed Traders can buy and sell futures contracts on the fed funds rate to hedge against interest rate risk.  Traders will buy the fed fund futures if they believe the fed will lower the federal funds rate and visa versa if they believe the fed will increase the fed funds rate.  He explains how to read the price quoted for the fed funds futures contract.  One can use the fed funds futures to predict federal reserve interest rate policy.  For example, if the current fed funds rate is at 2% and the fed funds futures are quoted at 97.5, this would indicate that traders expect the fed to drop interest rates by 50 basis points, or .5%.  Remember, this contract trades at a price which is discounted by an amount of the fed funds interest rate expectation. 

Tim Ord
Ord Oracle

Tim Ord is a technical analyst and expert in the theories of chart analysis using price, volume, and a host of proprietary indicators as a guide...

Tradingsim.com
Day Trading Simulator

Tradingsim.com provides the ability to simulate day trading 24 hours a day from anywhere in the world. TradingSim provides tick by tick data for...

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