currency futures(redirected from Foreign Currency Futures Contracts)
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.
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.