Trading the Fed Funds rate higher through December 2016

Click here for what this rate is and how it’s set
Click here for the latest guidance on the where Fed sees this rate and when
Click here for the last 24 hours of rate news, here past week, here past month

1) Trading the Fed Funds rate from 0.54% higher between now and December 2016 ZQZ16

Click here to enlarge the December 2016 rate, price valuation chart below.


Instructions on how to experiment with any potential outcome for this trade.

2)  Click here and open the December 2016 delivery risk/reward spreadsheet, when the spreadsheet opens enable it.

A) Quotes are linked in cell B-1
B) Enter any price for the Fed funds rate in cell B-2
C) The rate the price represents will show in cell C-2
D) Investment amount can be changed in cell D-2
E) Net profit or loss will show in cell E-2
F) Net liquidation value will shoe in cell G-2
G) Deposit per contract can be changed in cell G-3
H) Contracts traded shows in cell H-19

3) Click here to enlarge the image below

This spreadsheet will allow you to experiment with any potential outcome for this trade using any investment amount or leverage. Contact me for other strategies with a higher return on risk trading any duration in any global interest rate market.

4) Where the market sees rates and when

The Fed Funds futures contract will give you excellent indication of what market expectations are for the Fed Funds rate to the 0.01% monthly all the way out to October 2018.

To convert the contract price into the rate it represents take 100.00 subtract the contract price = the rate.

Click here for current futures quotes


5) Where the Fed see’s rates and when

Market versus Fed expectations are entirely different; the last guidance the Fed gave was 3.2500% by December 2017.

6) Difference between market and Fed expectations

Click here to enlarge the valuation table below


7) Click here for supporting links,charts, videos, reports directly on the Fed’s website.


8) If you’d like to track additional interest rate positions send us a message or schedule an online review .

8.1) All US interest rate markets we trade 
8.2) European interest rates
8.3) Australian Interest rates
8.4) Educational videos and Links

Peter Knight Advisor


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