Short-term derivatives
Futures and options can be used to hedge short-term interest rate exposure, protect against fluctuations in the overnight cash rate and manage cash exposures
Dr John Feeney from Martialis Consulting has written about the pricing and uses of the serial 90-day bank bill futures. The Australian Dollar 90-day bank bill futures (IR) listed on ASX are the backbone for transparent pricing of short-dated interest rate derivatives. This paper explains how to improve pricing and revaluation accuracy.
Product overview
Offering cost-effective exposure to Australian and New Zealand interest rates. ASX interest rate derivatives can be used to manage risk, trade on expectations of future interest rate moves and volatility.
Like any investment, futures and options on futures have risks you need to understand before trading. You should obtain independent advice from a professional adviser before making a decision.
