A currency future, also FX future or foreign exchange future, is a futures contract to exchange one currency for another at a specified date in the future at a price (exchange rate) that is fixed on the purchase date; see Foreign exchange derivative. Typically, one of the currencies is the US dollar. The price of a future is then in terms of US dollars per unit of other currency. This can be different from the standard way of quoting in the spot foreign exchange markets. The trade unit of each contract is then a certain amount of other currency, for instance €125,000. Most contracts have physical delivery, so for those held at the end of the last trading day, actual payments are made in each currency. However, most contracts are closed out before that. Investors can close out the contract at any time prior to the contract's delivery date.
Other articles related to "currency future, currency futures, futures":
... Currency futures can also be used to speculate and, by incurring a risk, attempt to profit from rising or falling exchange rates ... For example, Peter buys 10 September CME Euro FX Futures, at $1.2713/€ ... At the end of the day, the futures close at $1.2784/€ ...
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