currency futures

(redirected from Foreign Currency Futures Contracts)

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 ?
the gain from foreign currency futures contracts entered into to hedge
Customers, primarily New York brokers, phone him with orders for foreign currency futures contracts or options.
Each of the option contracts has a trading unit equal to one half the size of foreign currency futures contracts on the IMM, (International Money Market.) Therefore the size of the Sterling option contract is BP31,250 and the others are: DM62,500, C$50,000, Yen6,250,000, SF62,500, FF125,000, ECU62,500 and A$50,000.

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