currency futures

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Currency Futures

A futures contract in which the underlying asset is a currency. Two parties agree to buy and sell a certain currency at a given exchange rate with respect to another currency at some point in the future. The market for currency futures contracts is important in estimating the future value of different currencies.

currency futures

A contract for the future delivery of a specified amount of a major currency. Currency futures were developed in response to the substantial volatility of currency trading rates that occurred following the 1971 shift from fixed to flexible currency exchange rates.
References in periodicals archive ?
Other permitted derivatives include futures contracts on securities and non-equity indices, options on futures contracts, the purchase of put options and the sale of call options on securities held, equity swaps, interest rate swaps, covered short sales, forward sales of stocks, forward currency exchange contracts and currency futures contracts.
Three new currency futures contracts have been listed by the JSE, which track the exchange rate between the Rand and the Zambian Kwacha, Kenyan Shilling and Nigerian Naira.
The Johannesburg Stock Exchange (JSE) has launched the first currency futures which track the exchange rate between the Rand and select African currencies, listing three new currency futures contracts which track the exchange rate between the Rand (ZAR and the Zambian Kwacha (ZMK), Kenyan Shilling (KES) and Nigerian Naira (NGN).
USD/MUR and rand/USD currency futures contracts are traded on the Bourse Africa platform; USD/rand and pula/rand are traded on the JSE; while kwacha/ USD is traded on BADEX.
All DGCX currency futures contracts except US Dollar/Canadian Dollar registered substantial month-on-month increases.
John Anderson was addressing members, institutions and private investors at the seminar, held as a prelude to the upcoming launch of DGCX's new currency futures contracts.
The RBI also said the bourses are permitted, with immediate effect, to offer currency futures contracts in the three currencies in addition to the US dollarrupee contracts.
The bank said that the indices offer investors with easier access to interest rate and currency futures contracts.
Since the start of 2009, 147,000 currency futures contracts have traded on DGCX, valued at $9.
In addition, currency futures contracts worth $172,000 were settled in the week ending on March 20, 2009, demonstrating the growing significance of the exchange in meeting end user's foreign Aacurrency requirements.
the gain from foreign currency futures contracts entered into to hedge
49) In 1982, options on these currency futures contracts were introduced into the United States.