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Bankers' acceptance futures
Interest rate futures whose underlying securities are banker's acceptances.
(1) Bankers' acceptance futures are short-term interest rate futures that can be used to hedge short-term interest rate risk since there is an inverse relationship between changes in interest rates and prices of underlying banker's acceptances.
(2) For example, the Montreal Exchange (Mx) offers three-month Canadian bankers' acceptance futures (BAX).
Translations
Synonyms and variations
- BA futures
- Bankers' acceptance future
- Bankers' acceptance futures contract
- BAX
- Canadian bankers' acceptance futures