What is the Euribor?
The Euribor is short for Euro Interbank Offered Rate. This rate is based off the panel of European banks at which they borrow off each other. The rate is calculated by taking the highest and lowest 15% of all the quotes collected. The remaining rates will be averaged and made to read only three decimal places.
Euribor is published at 11:00 am each day, Central European Time.
Uses for the Euribor
Risks of Euribor
Taking a position either long or short will have the risk of the underlying banks. These banks will determine the rate which they lend to each other, effecting the rate at which the index will climb or fall.