Currency
Currency futures are a transferable futures contract that specifies the price, in one currency, at which another currency can be bought or sold at a future date. Currency futures contracts are legally binding and counterparties that are still holding the contracts on the expiration date must deliver the currency amount at the specified price on the specified delivery date. Currency futures can be used to hedge other trades or currency risks, or to speculate on price movements in currencies.
ADVANTAGE OF CURRENCY FUTURES
Currency futures are futures contracts for currencies that specify the price of exchanging one currency for another at a future date.
The rate for currency futures contracts is derived from spot rates of the currency pair.
Currency futures are used to hedge the risk of receiving payments in a foreign currency