Forex futures, a derivative of forex, is exchanging one currency for another at a specified date in the future and at an exchange rate that is fixed on the purchase date. So in a forex futures contract, currency pairs, delivery date, quantity and price are all specified. Moreover, nearly all forex futures quotes are made against the U.S. dollar. More importantly, forex futures traders are able to exit their obligation of buying and selling forex prior to the contracted delivery date. Forex futures contract helps investors to hedge against risk in the forex exchange.
The earliest history of future trading and present status of forex futures trading
The history of futures market can be traced back to the agriculture market in 19th century. During that period, peasants began to make deals on agricultural products that are not produced yet. Developed to present, traders not only can choose from a large variety of products in futures trading, but also have many choices in choosing the future brokers because there are a lot of future brokers such as IKON who provides super future platform.
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