标题: FRA vs Interest [打印本页] 作者: MeteorShower 时间: 2011-7-13 16:44 标题: FRA vs Interest
Just for confirmation,
FRA - you want the rate to go (being in a long position). Position is PV'd.
Interest Rate Futures - You price on the discount %, and you want the rates to go down (Long Position) - it is settled when at the expiry of the underlying rate...
Thanks作者: Benjiko 时间: 2011-7-13 16:44
Interest rate futures and forwards, yes you are right. FRA, yes.
How about the yield on T bills? Is it BDY? How about LIBOR? In case of LIBOR future contracts also, Does Long gain when LIBOR go up?作者: shootingstar 时间: 2011-7-13 16:44
just think of it like going long (buying) or short (Selling) stocks.
long gains when it goes up, short gains when it goes down.
