Interest rate futures refers to futures contracts with bond securities as the subject matter, which can avoid the risk of securities price changes caused by bank interest rate fluctuations, while interest rate futures prices change inversely with the actual interest rate, that is, the higher the interest rate, the lower the bond futures prices; The lower the interest rate, the higher the bond futures price. Simply put, interest rate futures are speculation or arbitrage in the future changes of interest rates.

For example, the current one-year interest rate is 1.75%. At this time, the price of a bond is 105 yuan. You expect the interest rate to become 2% in three months (of course, it will not change much in general, and the truth is exaggerated here). In this way, the price of bonds will fall. At this time, you can short a bond, which is equivalent to 100. Of course, if the interest rate doesn't go in the direction you predicted after three months, it will fall, which will lead to an increase in bond prices. At that time, you will have to buy the bonds back at a high price and return them to others. This is just an example. The actual price and interest rate should be calculated according to the actual situation, and the term is flexible.

I hope it will be helpful to you and I hope it will be adopted. Thank you.