Foreign currency futures contract
Foreign currency futures contract
Standardized and easily transferable obligation between two parties to exchange currencies at a specified rate during a specified delivery month; standardized contract on specified underlying currencies, in multiples of standard amounts. Purchased and traded on a regulated exchange on which margins are posted.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved