Currency Futures

Currency futures are closely related to forward contracts. These are more popularly known, as futures contracts and are traded at  he futures markets, A futures contract is a standardized  agreement to buy or sell a pre specified amount of foreign currency in the  uterus market at some specified future date between the parties to the contract, Currency futures contracts skillets are for    the major hard currencies of the world, namely, the US $, the British i., the German Deutsche, the French franc, the Japanese  en and the Canadian dollar. , Futures, bx-ING standardized contracts in nature, are traded on an organised exchange; the  clearing  use of the exchange operates as a link between the two parties of the contract, namely, the buyer and the seller. In other words,   transactions are through the clearinghouse and the two parties do n Of deal it between themselves, While it is true that   uterus contracts are similar to the forward contracts in’ their objective of hedging foreign exchange risk of business firms, jitney   fifer in ma,NY chi~significant ways. “As pet the L C Gupta Commie, “derivatives forward, futures or option contr.K1 of pre  determined  fixed duration, linked for the puerile of contract fulfill Milton the value of specified real,or financial asset or to index   security’.

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