Futures are derivatives, meaning that they derive their value from an underlying asset like a commodity such as oil or a financial asset such as a bond, stock index or interest rate.
Futures are traded on regulated futures exchanges such as Liffe in London or CME in the United States and are structured as legally binding contracts. This means a counterparty to a trade undertakes to physically or notionally make or take delivery of a given quantity and quality of a commodity at an agreed price on a specific date or dates in the future.
STIR futures are a variety of future contract where the underlying asset is a Short Term Interest Rate.
A short-term ...