currency futures

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 ?
Stater's wholly-owned subsidiary, Stater Global Markets, is a Financial Conduct Authority, or FCA, regulated brokerage that facilitates market access across multiple instruments including spot FX, digital currency futures and contracts for difference, or CFDs.
It trades short-term treasury bonds, common stocks(primarily from former state-owned enterprises that have been privatized, including food and beverage, construction and banking companies), and foreign currency futures.
The Reserve Bank of India today issued guidelines permitting standalone Primary Dealers (PDs) to participate in the exchange traded currency futures on approved stock exchanges subject to adherence to certain risk control measures and without diluting their existing obligations in the G-sec market.
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.
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.
Late on Monday, RBi banned banks from proprietary trading in domestic currency futures and options while Sebi doubled the margin requirement on the domestic dollar- rupee forward trade.
The Reserve Bank of India has imposed restrictions on banks, barring them from trading in the currency futures and exchange traded currency options market on their own.
It followed an order by the Reserve Bank of India late Monday to the nation's banks to stop trading for their own accounts in domestic currency futures.
In the currency futures market, the most-traded near-term dollar/rupee contracts on the National Stock Exchange, the MCX -SX and the United Stock Exchange closed at around 55.