CME Eurodollar options are the most actively traded exchange-listed interest rate options contract in the world. Options liquidity offers traders and hedgers an even greater opportunity to take advantage of their views on the direction of U.S. interest rates. In addition, options on CME Eurodollar futures provide the opportunity to limit losses while maintaining the possibility of profiting from favorable changes in the futures prices.

Electronically traded CME Eurodollar options are representing more and more of the total options average daily volume. Improved electronic functionality and growing volume are transforming the CME Eurodollar options market, making it easier for customers to execute complex trading strategies and capitalize more quickly on changing trends in the world’s most actively traded options on futures market.

Trading on the CME Globex platform virtually 24 hours a day, CME Eurodollar options are growing in volume. Open interest of over 30 million contracts creates unsurpassed liquidity, consistently tight bid/ask spreads and lower transaction costs for our clients. The CME Globex platform makes market prices universally available in real time, with transactable quotes on a subset of outright puts, calls and straddles. Over 120,000 predefined outright and spread combinations are available on the platform. CME currently supports the most common, liquid and complex Eurodollar options spread strategies, including: straddle strips, call or put doubles, and conditional call or put spreads.

All trades are matched and settled through CME Clearing, which means the creditworthiness of every transaction is guaranteed. Matched trades are instantly recognized by the exchange, fed automatically to the trader’s clearing firm and back office systems, and appear in the trader’s clearing statements the following day.

Features of CME Eurodollar options on Globex include:

• Covered options
• Top order market maker protections
• Automated Request for Cross (RFC) trades
• Extensive spread strategy functionality
• Easy, secure Internet access
• Flexible front-end order entry system

For more information, explore CME Eurodollar Options Resources and CME Eurodollar FAQ.