Currency future


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Currency future

A financial future contract for the delivery of a specified foreign currency.

Foreign Currency Future

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.
References in periodicals archive ?
ALEX Salmond is looking increasingly isolated in the argument over our currency future.
The data used in this paper consists of daily closing rates of INR-Dollar spot, domestic forward, NDF and exchange traded currency future contract on the National Stock Exchange of India (NSE), for which near month June 2009 contract's closing prices are taken.
Therefore, the Company has opened a nine month currency future position which
Total net gain from foreign currency future operations was $1,030,959 for the three months ended July 31, 2008 as compared to a net gain from foreign currency future operations of $1,126,058 for the quarter ended July 31, 2007.
DBV will offer investors access to the Deutsche Bank G10 Currency Future Harvest Index(TM), which is designed to capitalize on the trend that currencies associated with high interest rates, on average, tend to rise in value relative to currencies associated with relatively low interest rates.
The investment objective of the Fund is to track changes, positive and negative, in the level of the Deutsche Bank G10 Currency Future Harvest Index-Excess Return(TM), or the Index, over time, plus the excess, if any, of the Master Fund's income from its holdings of United States Treasury and other high-credit quality short-term fixed income securities.
We have had a promising start to the year, particularly with the performance of some of the exchange's more recent contracts such as the two new pairs of Mini Indian Rupee Cross Currency Futures and MSCI Futures, Gaurang Desai, interim chief executive officer, DGCX.
Gaurang Desai, Interim CEO of DGCX said: "We have had a promising start to the year, particularly with the performance of some of the Exchange's more recent contracts such as the two new pairs of Mini Indian Rupee Cross Currency Futures and MSCI Futures.
Further expanding its emerging market product portfolio, the Exchange re-introduced the Indian Rupee Option contract, launched two MSCI India Index contracts and listed two new pairs of Mini Indian Rupee Cross Currency Futures.
Thus businessmen, African firms, banks and financial institutions and the investor fraternity who have exposure to forex risk desperately need proper hedging instruments, such as currency futures.
In the pipeline are three new currency futures including South African Rand, Russian Rouble and the Korean Won, all of which are set for launch in Q3.
These can be done through the use of currency futures, forwards, options or even currency ETF.