An interest rate swap can be seen as a series of futures contracts, and, in fact, many swap players use futures to hedge their swaps.

One popular contract among swap players is the Eurodollar futures contract, which is based on the rate paid on three-month Eurodollar deposits. Eurodollar futures contracts are traded on the Chicago Mercantile Exchange. Contracts mature every three months -- in March, June, September, and December -- for the next 10 years.

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