Managing short-term exposure: protecting interest rate positions against short-term price movements
• Hedging positions from event risk: such as that associated with official cash rate announcements or economic data releases
• Outright trading: profiting from anticipating short term price movements (or the lack of) in the interest rate market
• Strategy trading: used for options strategies such as straddles and strangles
• Putting the equivalent of a stop loss order in place: by providing a firm exit price in the event of a market decline (rise) if a trader has a bought (sold) position in the market.