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What are eurodollars

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FRM: Eurodollar futures: introduction

52 635 views | 28 Aug. 2008

Here is an introduction to

Here is an introduction to the Eurodollar futures contract using current quotes to illustrate: Assume we take a long position in a December 2008 Eurodollar futures contract. The quote is 97.005. That means we are "locking in" an annualized LIBOR rate of 2.995% (1100 -- 97.005). The quote of 97.005 corresponds to a contract price of $992,513 (the contract is on a par of $1 million). If the LIBOR rate declines to, say, 2.0% in December, the quote goes up to 98 (100 -- 2) and contract price goes up to $995,000. As a long position, we gained (by design) $25 per 1 basis point decline in the LIBOR. For more financial risk videos, visit our website! http://www.bionicturtle.com

Bilal Doni

This means that you are lending $1million at a predetermined rate. If you have a long position.

Xu Fan

Amazing.

Kok Tong Lee

thanks!

Sasha Hua

really helpful

Johnny bizaro

very interesting.

CFA level 1 candidate

Super teacher!!! I wish I have you at school!! David, great presentation!

andreif132

awesome! Thank u!!!

Zachary Friss

damn, this is incredibly easier to follow than the lectures at my top 10 undergrad b school. thanks dude.

Yedukondala Raju Prathikantom

David Harper is a wonderful teacher. superbly presented the concept once again!!

Andrei

@hbsfhjo I've hit about 370% gains consistently. You just need a better system. This one will turn things around. Watch this >> bit.ly/KOe3Ot?=rpubit

ScRaS181

Thank you. 100x better than my shitty uni lecturer.

travispavlik

It would be awesome to demonstrate the TED spread trade...nobody has it anywhere. Thanks! Long Treasury short Eurodollar different options 3 months vs longer duration

Shyamal Dhebar

Thank you so much..

Luís Madeira

Great, thank you.

1234doawee

what does this mean? (the contract is on a par of $1 million)

YIQIAO ZHANG

Thank you!! It is really helpful!!

YH

Pretty clear! Thx!

Peter Marini

Thanks for keeping it simple.

Zahid Bagwan

Thank you so much. You are doing a great job.

Bruce Wayne

is the "100" convention? (just like how 90 days is a convention)?

Hernan E Batista Z

This is a great video. I am using it in my own website about this topic here: https://binbitforex.club/%ef%bb%bfknowing-eurodollar-options/

waverunnerMN

Many thanks...

Bionic Turtle

Thanks, appreciate that. The formula is per the design of the contract, so the exchange really sets it. Because somebody wanted a 1 point to equal $25. The 10,000 is used (not uncommonly) to convert a decimal basis point into an integer. For example 1 bps = 0.01% = 0.0001. Well, that's clumsy, so 10,000 * 0.0001 = 1. David H

1234doawee

its really weird reading this comment after 8 months.. how far iv come :)

Ben Tyler

UserDone...just read the exact same line. So confused, dave harper says one thing dave hall says another. Who's right? There's only one way to find out......

Vipin Anand

Very very good explanation........I follow your vids a lot...very informative...Keep it up

Mohammed Okour

is it possible to attach the sheets that you are using in your presentations, thank you

Pakorn Pootranon

Thank you so much for your presentation.

What are eurodollars

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Eurodollar Futures Contract Explained

1 110 views | 22 Jul. 2020

There are very few people

There are very few people who hear the term “Eurodollar futures” and don’t immediately think it’s a futures contract that helps you take advantage of the EUR/USD. That’s a natural assumption to make. Forex is the biggest market in the world and said currency pair is the most actively traded one.

However, the truth is that they are something completely different. Eurodollar futures contracts are time deposits that are stored in banks outside the US, but denominated in US dollars. They are outside the FED’s jurisdiction. This means they bear higher risk, thus have higher yield.

Okay, but why is it called “Eurodollar”? When they were first launched, the dollar-denominated time deposits were held mainly in European banks. Due to this, they became known as Eurobank dollars, initially. Over the years, these instruments started spreading within banks worldwide. Today, they still retain their original name: Eurodollars.

Fun Fact: Currencies that are deposited in banks outside their home country are referred to as “eurocurrency”. For example, Australian dollars kept in a Swiss bank are considered eurocurrency.

Although not the most popular instrument, Eurodollar futures are a useful investment mechanism for both advanced and beginner futures traders. The reason being their unrivaled liquidity and long-term stability.

Whether you want to know more about Eurodollar Futures Contract or any other topics, Earn2Trade has you covered!

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0:00 Music Intro

0:13 Intro

2:15 What is the Eurodollar?

3:25 The history

5:10 Eurodollar market

7:24 Eurodollar futures

8:34 How they work

10:04 Contract specifications

11:20 Trading Eurodollar futures

13:00 Pros

14:30 Drawbacks

15:30 Final thoughts

serena x.

Thanks for the great vid! How will the switch from LIBOR to SOFR affect trading these futures?

Burrell Investments

Would you come on our podcast, you can pitch Earn2trade!?

What are eurodollars

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Breaking Down Eurodollars - The Most Important, Least Understood Market in the World

5 585 views | 1 Sep. 2020

Brent Johnson, Founder &

Brent Johnson, Founder & CEO, Santiago Capital, LLC

Jeffrey P. Snider, Chief Investment Strategist, Alhambra Investment Partners LLC

Michael Ippolito, Co-Founder, BlockWorks Group

Steve Osmonson

Isn’t the imf and the sdr a way to be a lender of last resort? Thanks

fallen angel

You have NO idea what you are talking about ?

Matt Lee

Really good interview, thanks for the content :)

Mayank Jain

The Fed TIC data is updated monthly. Is there another data source which gets updated on weekly schedule? How else can one incorporate this info in actual trading? https://www.treasury.gov/resource-center/data-chart-center/tic/Pages/ticsec.aspx

J P

Amazing

Steven Tokeshi

Sooo the eurodollar system is inherently a fractional reserve system which must either continually grow, or collapse. Sooo you're saying it's nothing but a big fat Ponzi scheme...

Brad Kendrick

Brilliant gents, love when you two catch up ?

Dwayne Hunt

Like their extreme mindset with the higher USD in the long term.

Alex Nezhynsky

Fascinating and eye-opening. Thanks for posting

Peter & Samantha Radisich

interesting that the "dollar shortage event" that these folks say caused the gfc, occurred after the US clinton govt ran surpluses. And what does a govt surplus do - takes dollars out of circulation! I would think this is something to track - if the US govt deficit starts to move closer to zero (e.g. delayed/reduced stimulus bills). This is one way that banks can reduce credit growth without causing a crash - the US deficit needs to expand to fill the gap left by credit shrinking

Todd Geiger

Thank you Julie! And thanks BlockWorks, Jeff & Brent.

Anders Petersson

Only 1.6k views? That is incredible, everyone should watch this.

fallen angel

Eurodollar explained:
https://youtu.be/-zT9pa5AOuE

fallen angel

Jeff Snider is full of ?

michael s

Brent at 43:01 "it is not a sustainable system and I've said this a hundred times but a fractional reserve system is a system that must grow and if it doesn't grow, it crashes."

Josh Jeff

I think anybody who believes in $100,000 BTC is an idiot. BTC will probably peek at $24,000 by the end of the year due to inflation. The price on everything is skyrocketing. Nearly doubled over the last six months. The problem is there were never altcoins in the past. So bitcoin didn't have a competitor or any competition. Now with competition I would much rather put my money into a Altcoin instead of Bitcoin. I think Chain-link is a perfect example up 1000% this year. I would much rather buy 800 chain-link, then 1 BTC.

daniel lowry

Can bitcoin become the standard of the eurodollar system?

Rohit Kumar

I am confused on how the 2008 market melt down was caused by the euro dollar system ? Can somebody enlighten me please ?

fadi baza

great video

Kava

I'd actually watch Jeff talk for 20 hours.

Rui Cardoso

??

Xmod

Funny how reality is the exact opposite of the consensus..
Excellent interview!

Mayank Jain

Selling of US Treasury by foreign banks is a great signal go track for dollar shortage. Any good source for it?

Gaudenz Gaudenz

THANXXX A LOT!

Aayush Patodia

it was an absolute pleasure seeing these 2 guys bouncing their ideas off of each other

jubba frubby

great video for all round understanding

Ray Hanks

How many times are you going to say "uhhh" like seriously???

Imaginatia

Financial investments refers to things to a broad spectrum of different people but not-withstanding, bitcoin has revolutionized financials but as a medium of exchange and also making a fast pace to become the ultimate store of value. It is pertinent to hold a good size of the asset before the year runs out and the most result i have gotten is trading using the signals provided by Frank Hagan, a professional when it comes to analyzing, strategizing and trading generally. Within my first 2 weeks, i had traded and earned over 4 btc on my 1 btc which i have held for over 10 months, with no desirable results to show for. You can contact Mr Frank Hagan on whtsapp +46700263583 and telgram @ Hagansignals

Roy Wessbecher

OK, is it time to TRY to get an estimate of the total world $ supply? No?
Better not to know, huh? Ignorance is bliss, huh? Till the unknown totally bites us in the ass.
Maybe this "$ shortage" is currently being alleviated by tethered "stable-coins" and DeFi in the cryptocurrency space?
There you go - Crypto (one in particular) saves us (in too many ways to list here).

Colin Morrissey

Best finance analogy ever ... Eurodollar players are 18 yr olds drunk on 3.2 ? ?

Sergio Toledo

Great video, cheers from Brazil

BlergleslinkVettermoo

Good discussion.

michael s

Deserves to have way more views!