๐ Maturity selection in interest rate futures
Choosing the correct maturity for an interest rate future is essential, as it defines the duration of rate exposure.
Maturities should be selected based on anticipated rate movements; shorter maturities for expected rate increases, and longer for stable or declining rates, aligning with your overall financial strategy and risk tolerance.
Maturity dates are typically standardized to align with the end of a calendar quarter or month. These are standardized to enable traders to negotiate around the same maturities, so that liquidity becomes more concentrated, facilitating traders to open and close positions against one another.
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