Newhuman

Any chance on getting a bit more of an explanation please?

You said it's like a FRA. FRA is simple enough. 2x4 FRA: you get the forecast of market rates in two months for two month loan. Then in two months time you discount the difference between actual and contract rate to PV. So how is this similar to a Eurodollar contract?

When you are buying a contract, what exacly are you agreeing to?

Similarly, when you short a contract, what's your liability at expiration?