Interest Rates Trading & Derivatives

Make more of short term trading opportunities by trading on Interest Rate price movement at City Index.

Spread Bet or Trade CFDs on markets including Short Sterling, Eurodollar and Euribor with tight spreads.

  • Tight spreads from 0.02 points
  • Choice of 3 Interest Rate markets
  • Award-winning trading platform
Trade Interest Rates from just 0.02 points in market hours

Why trade Interest Rates with City Index?

Global Opportunities

Choice of 3 markets

Including Short Sterling, Eurodollar and Euribor futures

Spreads from 0.02 points

Spreads on Eurodollar and Euribor are 0.02 points

Award-winning platforms

Voted Best Spread Betting Platform 2017 ADVFN

Choice of products

Speculate on Interest Rates by Spread Betting or CFD Trading

Trade wherever you are, on our fast, reliable platforms

Customisable charts

16 chart types with 80+ indicators designed to help you perform technical analysis

Award-winning platform

Our powerful technology is designed to suit you, whatever your level of trading expertise

Actionable trade ideas

Our research portal highlights trade ideas using fundamental and technical analysis

Trade anytime, anywhere

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Spread Betting and CFD Trading

City Index offers Spread Betting and CFD Trading on Interest Rates. Typically UK investors choose
Spread Betting because any profits are free from UK Capital Gains Tax (CGT)*.

Spread Betting

Best for
Tax-free trading in UK*

Trade type
£ per point

Tax
No UK Capital Gains Tax (CGT)
or Stamp Duty*

Trade on
Global Indices, FX, Shares,
Commodities & more

Commission
Commission free

Platform
Web, mobile and advanced platforms

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CFD Trading

Best for
Hedging

Trade type
Buy/sell CFDs

Tax
No UK Stamp Duty. You do pay UK CGT but losses can be offset against tax*

Trade on
Global Indices, FX, Shares,
Commodities & more

Commission
Share CFDs only

Platform
Web, mobile and advanced platforms

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Test drive a trading account
Trade Interest Rates risk free with a demo account

Why City Index?

With fast, reliable execution and tight spreads here's why our clients choose
City Index
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Over 30 years' experience in Spread Betting, FX and CFD Trading
Authorised and regulated by the Financial Conduct Authority (FCA)
Risk management tools to help protect your positions
Trade on multiple platforms and devices
Actionable buy/sell trade ideas from our research portal
Fast, easy payments and secure withdrawals
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Why trade Interest Rates?

Trusted market

Interest Rates are a trusted safe haven market in times of volatility

Short-term opportunities

Trade Interest Rates over shorter time periods; minutes, days or weeks

Trading opportunities

Opportunities arise from central banks rate decisions and inflation
Global Opportunities

UK and European markets

Trade on European and UK Interest Rate markets with tight spreads

Short the markets

Trade on falling markets (going short) as well as rising markets

Trade anytime, anywhere

Trade on desktop, close on mobile, our accounts work on multiple devices
Spread Betting with City Index

How to trade Interest Rates

Interest Rates are one of the financial world's most trusted safe havens in times of volatility, making them attractive to traders who speculate on price movements.

Trading on price movements in Interest rates allows you to diversify your investment portfolio. If Interest Rates rise, you can buy or go long on a market. If you think Interest Rates may fall, you can sell or short the market.

With City Index you can trade on Interest Rates with a Spread Betting or CFD Trading account.

How to trade Interest Rates

Learn to trade Interest Rates

What is Spread Betting?

Learn to trade Interest Rates using our spread betting tutorials

Spread betting

How to analyse markets

How to identify trading opportunities using City Index's research tools

Research tools

How to manage risk

Learn techniques to improve your trading and manage risk effectively

Risk management
Trade Interest Rates from just 0.02 points in market hours

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Open an account to begin trading Interest Rates

Interest Rate futures

An interest rate future is a futures contract where the buyer and seller agree to the delivery of an interest bearing asset on a future date.

The price of an interest rate future reflects the sentiment of what the market expects the interest to be on the expiry date of the contract.

Interest rate trading focusses on the short term lending markets and lets investors speculate on the future movement of interest rates. They can also be used to hedge against the risk of an interest rate moving in an adverse direction.

How do Interest Rates work?

Interest rate prices displayed are the future rate deducted from 100. For example, a price of 95 would indicate that the market is expecting future interest rates to be 5% (100-5). Interest rates are typically traded as future contracts or over the counter (OTC) between two counterparties.

What are the most popular Interest Rate markets?

Short Sterling
The short sterling contract is a means of speculating on potential changes in the Bank of England’s base rate and is highly correlated to UK interest rates.

Euribor
The Euro Interbank Offered Rate is based on the unsecured lending rates between Eurozone banks. Euribor rates range from one month to a year.

Eurodollar
Rates paid on US dollars held by banks outside the United States. The price is based on the Eurodollar futures contract traded on the Chicago Mercantile Exchange (CME).

How are interbank rates set?

Unlike the rates set by central banks, interbank rates are based on information collected from a wide range of banks. For example, Euribor is based on rates submitted daily by banks around the Euro area.

Where are Interest Rates traded?

Interest rates are typically traded as futures contracts on futures exchanges. Interest rate futures constitute one of the largest financial markets in the world in terms of their daily volume. There are many companies and investors who want to be able to protect themselves from the risk of interest rates changes by hedging.

Interest rate futures can also be traded bi-laterally between direct counterparties over-the–counter (OTC).

Who trades Interest Rates?

Interest-rate derivatives are often used as hedges by institutional investors as well as banks, companies and individuals to protect themselves against changes in market interest rates. They can also be used to increase or refine the holder's risk profile.

What moves Interest Rate markets?

  • Rates set by central banks, including expectations of future rate changes
  • Health of a country’s economy
  • Inflation – higher inflation may cause central banks to raise rates
  • Lack of confidence on the part of banks in lending to each other
  • Lack of liquidity in the interbank market – this means that there are fewer banks willing / able to lend, allowing those that will lend to raise their rates, especially on short term money

Trading Interest Rates with City Index

  • At City Index we offer spread bets and CFDs on a variety of UK and EU interest rates
  • Instruments offered include Euribor, Eurodollar and Short Sterling.