Eurodollars

Trading Basics

Eurodollars

Dollar denominated deposits held outside the US, and thus outside the control of the US federal reserve. These deposits don’t have to be held in the euro area.

Other Trading Basics

Basis Point

A basis point is 0.01% and is typically used when quoting interest rate changes.

A move of 0.25% is described as 25 basis points.

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