Rho Protocol Documentation
BlogApply for BetaETH Sepolia faucet
  • ๐ŸŒŸ Getting started
    • ๐Ÿ“„ Overview
    • ๐Ÿ’ก Why go with Rho?
    • ๐ŸŽฏ Key use cases
    • ๐Ÿ›ก๏ธ Safety and dependability
    • ๐Ÿ‘จโ€๐Ÿ‘ฉโ€๐Ÿ‘งโ€๐Ÿ‘ฆ Who does Rho Protocol benefit?
  • ๐Ÿ“‹ PRODUCT GUIDE
    • ๐Ÿ”ง Product basics
      • ๐Ÿ“ˆ PnL mechanics: How to profit with Rho
      • ๐Ÿ“‰ DV01: Fixed income's delta
    • ๐Ÿ’น Margin and leverage on Rho
      • ๐Ÿง  Is 50x leverage high for a rates trade?
    • ๐Ÿ“… Maturity selection in interest rate futures
    • ๐Ÿค– Automated market maker (AMM) model
    • ๐Ÿ’ผ Leveraging interest rate futures at Rho Protocol
    • ๐Ÿฆ Rho Liquidity Vault
    • โ—Risks
  • ๐Ÿš€ How to trade on Rho
    • ๐Ÿ“– New user guide: Start here
    • ๐Ÿ’ฐ Depositing collateral
      • ๐Ÿ”— Cross-chain deposits
      • ๐Ÿงช Requesting testnet assets
    • ๐Ÿ“Š Dashboard overview
    • โšก Executing your first trade
    • ๐Ÿ”€ Switching environments
    • ๐Ÿ”™ Review and adjust
  • ๐Ÿ—‚๏ธ Trading products: Technical specifications
    • ๐Ÿ‘‰ Rho rate futures
    • ๐Ÿ”จ Trading mechanisms and models
    • ๐Ÿงฎ P&L Calculation
    • ๐Ÿงพ Fees Structure Overview
      • Liquidity Provider (LP) Fees
      • Protocol fees
      • Time to Maturity
      • Price Impact and Variable LP Fee
      • Summary: Total Fee Calculation
      • Example 1: 31 Days to Maturity
      • Example 2: 1 Day to Maturity
    • ๐Ÿ›ก๏ธ Risk management and margin details
  • ๐Ÿ—๏ธ Practical applications and use cases
    • ๐ŸŒณ Hedging against interest rate fluctuations
    • ๐Ÿ’ต Opportunities to capitalize
    • ๐ŸŽฏ Arbitrage strategies
    • ๐Ÿ’ธ Income generation through enhanced yield strategies
    • ๐ŸŒฑ Portfolio diversification
  • โ‰๏ธ Frequently Asked Questions
    • ๐Ÿ“ฅ For Vaults depositors
    • ๐Ÿง How and why should I begin trading IRDs on Rho Protocol?
    • ๐Ÿ’ผ What digital wallets does Rho Protocol support?
    • ๐Ÿ”ง How can I effectively manage my collateral at Rho Protocol?
    • ๐Ÿšจ What can I do to prevent being liquidated?
  • ๐Ÿ› ๏ธ Troubleshooting
    • ๐Ÿ”— Connecting wallets
    • โŒ Failed transactions / trades
    • ๐Ÿ”Ž Viewing transactions
    • ๐Ÿ“ž Contact support
  • ๐Ÿ‘จโ€๐Ÿ’ป Developer docs
    • ๐Ÿ“„ Contracts overview
      • ๐Ÿ—ƒ๏ธ Types, structs and enums
      • ๐Ÿ“ก Router contract
      • ๐Ÿ’ฌ Quoter contract
      • ๐Ÿ‘“ ViewDataProvider
    • ๐Ÿ’ป Rho SDK
      • ๐Ÿ“š Technical Reference
  • ๐Ÿ”ง Deployed contracts
    • ๐Ÿงช Testnet addresses
    • ๐Ÿ”‘ Mainnet addresses
Powered by GitBook
On this page
  1. ๐Ÿ“‹ PRODUCT GUIDE

๐Ÿ“… 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.

Previous๐Ÿง  Is 50x leverage high for a rates trade?Next๐Ÿค– Automated market maker (AMM) model

Last updated 11 months ago