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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Buying or selling futures
How does one determine when to start by buying or selling futures?
It depends what currency the contract size is quoted in.
If the transaction being hedged involves buying the contract currency then we buy futures. If the transaction involves selling the contract currency then we sell futures.
I do explain all of this in my free lectures on the management of foreign exchange risk.
Thanks
You are welcome 🙂