Eurodollar futures gauge the interest rate on interbank lending with a 3-month timeframe; that is, Eurodollars (/GE) are a benchmark of short-term yields.
Eurodollars are our best option for trading short-term rates because of their liquidity and capital efficiency.
We trade Eurodollar futures to gain to bet on the future action of the Fed as the interest rates they directly affect are short-term interest rates.
With a greater number of meetings and thus greater uncertainty, longer-dated contracts trade with greater volatility.