foreign currency future

Foreign Currency Future

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.

foreign currency future

A contract for the delivery of a specified amount of a foreign currency. A U.S. business selling products in Germany may decide to sell futures contracts on the euro in order to guarantee an exchange rate of the euro to dollars on a specific date.
References in periodicals archive ?
"Time-Varying Distributions and Dynamic Hedging with Foreign Currency Futures," Journal of Financial Quantitative Analysis, 28, 4, 1993, pp.
foreign currency futures. Although somewhat less important than the
Bourse for foreign currency futures deals for individuals to start
The unhedged derivative exposures include foreign currency futures, fixed income futures and credit default swap (CDS) long positions on certain credit exposures.
BSEis the main stock exchangein Azerbaijan.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 main areas of discussion at the meeting included AML/CFT, credit rating companies, development of secondary market, trading of foreign currency futures at Pakistan Mercantile Exchange (PMEX), enlistment of insurance companies on panel of banks, collaboration between SBP-SECP on financial literacy program, etc.
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.
That is, Treasury futures would be regulated by the Treasury and Eurodollar and foreign currency futures by the Federal Reserve.
Taxpayers with receivables and payables denominated in foreign currency can avoid the inherent currency risk by hedging the currency exposure through the use of various financial products, including foreign currency futures and contracts.
If forward exchange contracts (or any such similar instruments) or foreign currency futures are used as hedging instruments,
Customers, primarily New York brokers, phone him with orders for foreign currency futures contracts or options.
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)

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