Eurodollar Futures Misprint in Schweser? contract, exchange, example, minimum

LPoulin133

says “Eurodollar futures…settle in cash, and the minimum price change is one “tick,” which is a price change of 0.0001=0.01%, representing $25 per $1 million contract.”
How can 0.01% of $1m be $25?!
In fact, a few pages before this quote, Schweser says “The exchange also sets the minimum price fluctuation (which is called the tick size). For example, the basic price movement, or tick, for a 5,000bushel grain contract is a quarter of a point (1 point = $0.01) per bushel).”
So..does this mean that Schweser meant to say in the first quote that “Eurodollar futures…settle in cash, and the minimum price change is one “tick,” which is a price change of >, representing $25 per $1 million contract.”
(I wish I could bold it or highlight it but as I cannot, please see the above for insertion)

badonkus

Haha I noticed that too!

bluejazzy

Don’t get too excited boys!
You’re not unannualizing the discount. A price change of 0.01 is actually a change of 0.01/4 for a 90day Tbill quoted at an annualized discount.

Wendy01

i always forget that too.

Walex

Aahhhhhh……
Great satisfaction in knowing that I’m a silly dumbass rather than a stupid dumbass.
Thanks a lot!!

KungFuPanda

@njlevel10610, just remember:
1) long=buyer, short=seller
as simple as this, you’ll be able to draw out (literally) who’s in what situation thus who gains/loses!
2) Tbill=discounting, Eurodollar futures=interest add on
For simplicity, remember it as “tbill” belonging to the gov’t and b/c the gov’t is always so nice and wanting to provide citizens with a better life, they DISCOUNT their quote.