O'Reilly logo

Fundamentals of Financial Management, Third Edition by Vyuptakesh Sharan

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

25.6 MARKET FOR DERIVATIVES

25.6.1 Market for Currency Futures

Besides the spot and forward markets, currencies are also traded in the market for currency futures and the market for currency options. These two markets are known as the market for derivatives insofar as the prices in these markets are driven by the spot market price. The market for currency futures came into being in 1972 in the USA. It is at present found at many important financial centres.

A currency futures contract involves trading of an underlying currency at a specified exchange rate and for a fixed maturity period. In many other respects too, it is different from a forward contract. The size of a futures contract is standardised involving a fixed amount of different currencies. ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required