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.
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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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
Currency futures contracts imply "a meteoric rise of the U.S.
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.
The DGCX's total trading volume has reached 8.6mn contracts, mostly currency futures contracts. The bourse's copper futures contract, launched in April, is also gaining traction, Shah said.
All DGCX currency futures contracts except US Dollar/Canadian Dollar registered substantial month-on-month increases.
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 $9.4 billion (Dh34.5 billion).
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
Similarly, volatility of currency trading during the 1970s and 1980s(48) caused evolutionary developments in the currency markets such as the trading of foreign currency futures on regulated and OTC markets.(49) In 1982, options on these currency futures contracts were introduced into the United States.(50)