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Currency future information


A currency future, also known as an FX future or a foreign exchange future, is a futures contract to exchange one currency for another at a specified date in the future at a price (exchange rate) that is fixed on the purchase date; see Foreign exchange derivative.[1] Typically, one of the currencies is the US dollar. The price of a future is then in terms of US dollars per unit of other currency. This can be different from the standard way of quoting in the spot foreign exchange markets. The trade unit of each contract is then a certain amount of other currency, for instance €125,000. Most contracts have physical delivery, so for those held at the end of the last trading day, actual payments are made in each currency. However, most contracts are closed out before that. Investors can close out the contract at any time prior to the contract's delivery date.

  1. ^ "Forex Futures Trading - What Are Forex Futures?". www.daytrading.com. Retrieved 2022-06-08.

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Currency future

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Exchange rate

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is the rate at which one currency will be exchanged for another currency. Currencies are most commonly national currencies, but may be sub-national as...

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Floating exchange rate

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United States dollar

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Foreign exchange market

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Fixed exchange rate system

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Currency band

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Currency pair

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Foreign exchange spot

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spot, is an agreement between two parties to buy one currency against selling another currency at an agreed price for settlement on the spot date. The...

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Foreign exchange option

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List of countries by exchange rate regime

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Foreign exchange reserves

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naming fictional currencies because of the associations between currency names and countries; recognizable names for currencies of the future (e.g. dollar...

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