|
CURRENCIES
Currency futures were first created at the Chicago Mercantile Exchange (CME) in 1972,
less than one year after the system of fixed exchange rates was abandoned along with the gold standard. A currency future
is a futures contract to exchange one currency for another at a specified date in the future at a price that is fixed on the
purchase date. 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.
Investors can use currency futures contracts to hedge against foreign exchange risk, or
currency futures can be used to speculate and, by incurring a risk, attempt to profit from rising or falling exchange rates.
Whether you are a speculator or a hedger, this section on currency futures contains a wealth of valuable information. Before
trading currency futures and options you should contact an experienced broker to discuss market risk and opportunities.
FX Products Calendar and Guide
Click on the link above to download a very informative .pdf brochure entitled "FX
Calendar and Guide". It was published by the Chicago Mercantile Exchange. This is a must read guide for any novice or
advanced trader considering an investment in currency futures and options.
Click here to contact a licensed commodities broker with experience in the currency markets.
|
