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Ask the Tutor ACCA AFM
Currency futures
The dealer is the person who fixed the futures prices from day to day. On the last day of the future the price will be the same as the spot rate on that day (but, of course, as you will know from my free lectures, futures are not left until the final day - they are bought and sold within the period at whatever the prices happen to be on the relevant days.)
No - there is no printed piece of paper, and you will not have actually paid anything! It is only at the end of the contract that the dealer takes the difference between the sell and the buy prices and calculates what you owe them or what they owe you.
I do suggest that you watch my free lectures on foreign exchange risk management, where I explain all this in detail with examples.
There are lots of people buying and selling futures all the time. Just as with shares, the dealer fixed the price each day to make sure there are enough people both buying and selling. If no-one is buying at the moment, then the price is reduced (so people start buying). If no-one is selling at the moment, then the price is increased (so people start selling). This is exactly what happens with share prices.
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