My textbook provides the following definition: A Eurodollar futures contract is traded on the Chicago Mercantile Exchange and: • Is a commitment to deliver a $1mm Eurodollar time deposit with a 3-month maturity;
I have a very basic question, which might seem too dummy-like but still: What should be the remaining maturity of the deposit to be delivered? Exactly 3 month remaining or it might be that I can deliver deposit which at the delivery moment will have 2 month and 27 days remaining, 2 months and 12 days, 1 month and 12 days, and so on, maybe even 1 day?
Also I was not able to find any detailed explanation about the meaning of being long/short in the Eurodollar Futures contract. If I enter into the long Eurodollar Futures position, as I understand, this means that I will have to buy deposit from someone with short position?
Could somebody please provide some source with this type of explanations, or just some detailed numerical example would help.