Commentary 
The purpose of immensely important, woefully unappreciated eurodollar futures derivative contracts is simply hedging. But hedging enormous and complex financial positions isn’t for you or me, but rather for the global behemoths that are the eurodollar system itself (the world’s actual reserve currency). Given the scales involved, there are literally trillions on the line, therefore there is enormous effort in the market to uncover the best possible information.
But we don’t take the futures literally. Most times.
Let’s start with an example. As of May 26, the March 2023 contract price finished the day at 96.84. Settlement is done on a cash basis, and involves calculating a 3-month LIBOR index, which is nothing more than 100 minus whatever 3-month LIBOR happens to be when this contract expires next March….