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Buying or selling futures

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Buying or selling futures

  • This topic has 3 replies, 2 voices, and was last updated 5 years ago by AvatarJohn Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • September 1, 2020 at 2:28 pm #583015
    Avatardallas
    Participant
    • Topics: 1
    • Replies: 1
    • ☆

    How does one determine when to start by buying or selling futures?

    September 1, 2020 at 4:19 pm #583039
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54846
    • ☆☆☆☆☆

    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.

    September 1, 2020 at 7:26 pm #583052
    Avatardallas
    Participant
    • Topics: 1
    • Replies: 1
    • ☆

    Thanks

    September 2, 2020 at 8:39 am #583085
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54846
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Buying or selling futures’ is closed to new replies.

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