STIR Futures & Options

DEFINITION of 'STIR Futures & Options'

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

BREAKING DOWN 'STIR Futures & Options'

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

RELATED TERMS
  1. Options On Futures

    An option on a futures contract gives the holder the right to ...
  2. Inverted Market

    In the context of options and futures, this is when the current ...
  3. Contract Unit

    The actual amount of the underlying asset represented by a single ...
  4. Futures

    A financial contract obligating the buyer to purchase an asset ...
  5. Contract Size

    The deliverable quantity of commodities or financial instruments ...
  6. Serial Option

    A short-term option on a futures contract in which the underlying ...
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RELATED FAQS
  1. How do the investment risks differ between options and futures?

    Learn what differences exist between futures and options contracts and how each can be used to hedge against investment risk ... Read Answer >>
  2. What is the difference between open interest and volume?

    Learn more about options, what options' volume and open interest are and the difference between volume and open interest ... Read Answer >>
  3. How are futures used to hedge a position?

    Futures contracts are one of the most common derivatives used to hedge risk. A futures contract is as an arrangement between ... Read Answer >>
  4. Why do companies enter into futures contracts?

    Learn how companies use futures contracts for the purposes of hedging their exposure to price fluctuations as well as for ... Read Answer >>
  5. Does the seller (the writer) of an option determine the details of the option contract?

    The quick answer is yes and no. It all depends on where the option is traded. An option contract is an agreement between ... Read Answer >>
  6. How do I set a strike price for a future?

    Find out why futures contracts don't have set strike prices like options or other derivatives, even though price change limits ... Read Answer >>
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