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Hi John,
I have looked at the opentuition notes and still need help. Please could you let me know in layman terms how to choose between buy/selling of futures for currency questions. I look at the contract currency and think I’m doing the right thing but seem to be getting it wrong.
Could you give me a very very basic and simple example on how to know when I should want to buy/sell futures in a question.
Thank you for your help – this forum is such a lifesaver!
It depends what currency the futures contracts are quoted in, and whether the underlying transaction involves buying or selling that currency.
If the transaction is buying the contract currency then we buy futures (and sell them later).
If the transaction is selling the contract currency then we sell futures (and buy them later).
I do explain this is detail in the free lectures working through the lecture notes. It is pointless using the notes without watching the lectures that go with them because they are not a study text – it is in the lectures that I work through the examples and explain and expand on the notes.
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