Currency futures contract

Currency futures contract

Contract specifying a standard volume of a particular currency to be exchanged on a specific settlement date.

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.
References in periodicals archive ?
At present, MCX-SX offers trading in currency futures contract and this development will enable the exchange to offer additional asset classes.
A position in a foreign currency futures contract in relation to
Let's consider this example: If a Kenyan company is concerned that the dollar will appreciate against the deutsche mark before the payments are made, it will want to hedge against it by buying a dollar currency futures contract.
When exercised, the holder of the option receives a short or long position in the currency futures contract which expires one week after the expiration of the option contract.
Said CME president Bill Brodsky: "The Merc's Brazilian real is our first currency futures contract to be cash settled, providing greater flexibility to a wide spectrum of financial institutions and individuals who want to participate in the market of Latin America's largest economy.
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 bank said that the indices offer investors with easier access to interest rate and currency futures contracts.