Interest rates have traditionally been traded largely by banks, financial institutions, and other professional players. However, this market has now also been made much more accessible to ordinary independent traders and investors thanks to the introduction of CFDs. With highly leveraged CFDs, it is possible to earn meaningful profits even in the relatively slow-moving market for interest rates.
Typical interest rate CFDs that are offered by forex & CFD brokers include the Euribor 3-Month and the Australian 30-Day Interbank Rate. These are all trading instruments that are based on futures contracts with expiry dates that occurs at regular intervals. It is therefore important to be aware of the expiry date of each contract traded, and make sure to close out the trade on or before that date.