Forex Futures
An exchange-traded contract to buy or sell a specified amount of a given currency at a predetermined price on a set date in the future. All forex futures are written with a specific termination date, at which point delivery of the currency must occur unless an offsetting trade is made on the initial position. Investopedia Says:
Forex futures serve two primary purposes as financial instruments. First, they can be used by companies or sole proprietors to remove the exchange-rate risk inherent in cross-border transactions. Second, they can be used by investors to speculate and profit from currency exchange-rate fluctuations. Related Terms:
Currency Futures
Delivery Date
Exchange Rate
Foreign-Exchange Risk
Forex - FX
Futures Contract
Offset
Sole Proprietorship |