Trading Terms

Currency future

A futures contract is a binding agreement between two parties to buy or sell a commodity, currency, or security at a predetermined date in the future. Unlike forward contracts, futures contracts are traded on an Exchange and have standardized quantities and time periods. They are commonly used by importers and exporters to mitigate the risk of currency fluctuations in their future transactions. Think of it as a tool to hedge against potential losses due to market fluctuations.

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