Currency futures

Currency futures,

Definition of Currency futures:

  1. Currency futures may be contrasted with non-standardized currency forwards, which trade OTC.

  2. Contract to exchange a certain amount of a particular currency, at a specific exchange rate on a specified date. Currency futures are standard contracts used by international traders to hedge against currency risk. The IMM division of Chicago Mercantile Exchange is worlds premier currency futures market.

  3. Currency futures are a exchange-traded futures contract that specify the price in one currency at which another currency can be bought or sold at a future date. Currency futures contracts are legally binding and counterparties that are still holding the contracts on the expiration date must deliver the currency amount at the specified price on the specified delivery date. Currency futures can be used to hedge other trades or currency risks, or to speculate on price movements in currencies.

How to use Currency futures in a sentence?

  1. The rate for currency futures contracts is derived from spot rates of the currency pair.
  2. Currency futures are futures contracts for currencies that specify the price of exchanging one currency for another at a future date.
  3. Currency futures are used to hedge the risk of receiving payments in a foreign currency.

Meaning of Currency futures & Currency futures Definition