FxFut, short for “Forex Futures,” is a centralized form of Futures exchange in which two parties, through open outcry, buy or sell a foreign currency in a foreign currency and enter into a contract to deliver a standard quantity at a future date at an agreed price.
Foreign EXCHANGE FUTURES, ALSO KNOWN AS CURRENCY FUTURES, ARE FUTURES CONTRACTS THAT convert one CURRENCY into another at the end of THE trading day according TO CURRENT CONDITIONS.
Generally speaking, one of the two currencies is, in which case the futures price will be expressed as “X dollars per other currency”.
The representation of futures prices for some currencies may differ from the corresponding representation of spot foreign exchange rates.
Foreign exchange futures trading is the buying or selling of a certain amount of another currency in dollars at a fixed exchange rate on an agreed date.
Foreign exchange futures trading and contract spot trading have similarities and differences.
Contracts are bought and sold through banks or companies, and foreign exchange futures are bought and sold in special futures markets.
The main futures exchanges in the world are: Chicago Board of Trade, New York Mercantile Exchange, Sydney Board OF Trade, Singapore Board of Trade, London Board OF Trade.
The futures market should include at least two parts: one is the trading market, the other is the clearing center.
After THE BUYER OR SELLER OF FUTURES TRADES ON THE EXCHANGE, THE CLEARING CENTER BECOMES its COUNTERparty until the actual delivery of the futures contract.
Forex futures and contract forex trading are related to each other and differ from each other in the way of operation.
When BOTH SIDES OF THE TRANSACTION ARE ENGAGED IN FOREIGN EXCHANGE CONTRACT SIGNING, CLEARING CENTER WILL UNDERTAKE THE REQUIREMENT OF ENTERING GOLD TO BOTH SIDES OF THE CONTRACT, AND THIS amount IS THE DEPOSIT.