A Currency Futures contract allows market participants to trade the underlying exchange rate for a period in the future. A currency futures contract is a legally binding agreement that gives the investor the right to buy or sell an underlying foreign currency at a fixed price on a future date.
Protection against exchange rate fluctuations
Fix prices for import and export purposes
Take advantage of price movements in the exchange rate
Who should use this product?
Hedgers seeking to reduce risk by protecting an existing portfolio against
adverse currency movements.
Speculators hoping to make a profit on short-term movements in prices.
Investors looking to enhance the long-term performance of a portfolio
Arbitrageurs looking to profit from price differentials of similar products
in different markets.
How to use this product?
Buy a Currency Future (long) when you expect the Rand to depreciate
Sell a Currency Future (short) when you expect the Rand to appreciate