STIR Futures & Options

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DEFINITION of 'STIR Futures & Options'

An acronym standing for "short-term interest rate" options or futures contract.

INVESTOPEDIA EXPLAINS 'STIR Futures & Options'

Many companies and financial institutions use STIR contracts to hedge against borrowing or lending exposure.

RELATED TERMS
  1. Clearing House

    An agency or separate corporation of a futures exchange responsible ...
  2. Option

    A financial derivative that represents a contract sold by one ...
  3. Interest Rate

    The amount charged, expressed as a percentage of principal, by ...
  4. Hedge

    Making an investment to reduce the risk of adverse price movements ...
  5. Catastrophe Equity Put (CatEPut)

    Catastrophe equity puts are used to ensure that insurance companies ...
  6. Open Trade Equity (OTE)

    Open trade equity (OTE) is the equity in an open futures contract.
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