Skip to content
Sign inRegister
ACCA exam results — Are you ready?Chat about it >>

Ask the Tutor ACCA AFM

currency futures

AAMAAL4y ago
Hello sir.. Am still confused on how to we choose if we want to sell future or buy future contract (foreign currency hedging) .. Plz explain... I have watched all ur lecture ... Plz guide me on this as am really confused...
John MoffatJohn MoffatTutor4y ago#1
It depends on what current the contract size is quoted in. If the contract size is quoted in $'s, then if the underlying transaction involves buying $'s then we will buy $ futures. If the underlying transaction involves selling $'s then we will sell $ futures.
Sign in to reply to this topic.