# Eurodollar and its convexity

#### Josun

##### New Member
Hi,
This is the practice:
I don’t understand why it says “both position have positive convexities”. It confused me so much that why EDF has the positive convexity? Isn’t it a linear product?
Thanks

Staff member
Subscriber

#### David Harper CFA FRM

##### David Harper CFA FRM
Staff member
Subscriber
Sure thing, after i posted, I found this (at CME group) because (to be honest) I just wanted to confirm that wrt to the ED vs FRA convexity bias, that it is the FRA that has slight convexity bias (this bias is much smaller than the typical convexity we observe in bonds): https://www.cmegroup.com/education/...eurodollars/understanding-convexity-bias.html
... not the nice picture of a linear ED futures contract!