Currency futures contracts are contracts specifying a standard volume of a particular currency to be exchanged on a specific settlement date. Thus the currency futures contracts are similar to forward contracts in terms of their obligation, but differ from forward contracts in the way they are traded. In addition, Futures are daily settled removing credit risk that exist in Forwards.[81] They are commonly used by MNCs to hedge their currency positions. In addition they are traded by speculators who hope to capitalize on their expectations of exchange rate movements.
Currency carry trade refers to the act of borrowing one currency that has a low interest rate in order to purchase another with a higher interest rate. A large difference in rates can be highly profitable for the trader, especially if high leverage is used. However, with all levered investments this is a double edged sword, and large exchange rate price fluctuations can suddenly swing trades into huge losses.
Disclaimer: Any Advice or information on this website is General Advice Only - It does not take into account your personal circumstances, please do not trade or invest based solely on this information. By Viewing any material or using the information within this site you agree that this is general education material and you will not hold any person or entity responsible for loss or damages resulting from the content or general advice provided here by Learn To Trade The Market Pty Ltd, it's employees, directors or fellow members. Futures, options, and spot currency trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This website is neither a solicitation nor an offer to Buy/Sell futures, spot forex, cfd's, options or other financial products. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in any material on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.
A Cycle Forex Prediction Indicator determines the timing of a concrete Forex market pattern. It would be unwise for us not to mention support and resistance - they describe the levels of price where markets frequently rise or fall, and then reverse. Finally, the last one in our list is momentum. These indicators define whether the trend will be strong or weak after it progresses over a certain period of time. Momentum is highest at the time a trend starts, and lowest when it changes.

In the context of the foreign exchange market, traders liquidate their positions in various currencies to take up positions in safe-haven currencies, such as the US dollar.[88] Sometimes, the choice of a safe haven currency is more of a choice based on prevailing sentiments rather than one of economic statistics. An example would be the financial crisis of 2008. The value of equities across the world fell while the US dollar strengthened (see Fig.1). This happened despite the strong focus of the crisis in the US.[89]
Financial spread betting is only available to OANDA Europe Ltd customers who reside in the UK or Republic of Ireland. CFDs, MT4 hedging capabilities and leverage ratios exceeding 50:1 are not available to US residents. The information on this site is not directed at residents of countries where its distribution, or use by any person, would be contrary to local law or regulation.

An interesting observation is that the Forex Market Hours of the Tokyo and London sessions overlap for approximately 1 hour (varies for other European countries). You can (and probably should!) use this fact to your advantage. This means that all the crosses of European currencies and the JPY will have the highest volatility at the start of the European session. So if you are trading the GBPJPY you can simply carry out a few powerful trades between 8am-9am GMT, and then you are free for the day!
There are three primary forex markets — spot, forwards, and futures markets. The spot market is by far the most popular, and consists of the real asset that both the futures and forwards markets are based on. Forex market participants range from international banks to enterprises that deal in various countries who are looking to hedge risk on the exchange rates they use for dealing in multiple currencies.

A growing portion of forex market participants is retail traders who invest through banks or brokers. The two primary types of brokers for retail traders are brokers and market makers. Brokers take a fee from customers for finding the best price and trading on behalf of them while market makers are the principal in a transaction against a retail trader.
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During the week the most active Forex trading days are: Tuesday, Wednesday and Thursday. Sundays (opening) and Mondays are days when traders are mostly watching and analyzing the market and predict further price moves. Fridays are traded approximately till noon, after that all actions slow down and almost freeze before the actual market closing at 5 pm EST.

Currency trading and exchange first occurred in ancient times.[4] Money-changers (people helping others to change money and also taking a commission or charging a fee) were living in the Holy Land in the times of the Talmudic writings (Biblical times). These people (sometimes called "kollybistẻs") used city stalls, and at feast times the Temple's Court of the Gentiles instead.[5] Money-changers were also the silversmiths and/or goldsmiths[6] of more recent ancient times.

All exchange rates are susceptible to political instability and anticipations about the new ruling party. Political upheaval and instability can have a negative impact on a nation's economy. For example, destabilization of coalition governments in Pakistan and Thailand can negatively affect the value of their currencies. Similarly, in a country experiencing financial difficulties, the rise of a political faction that is perceived to be fiscally responsible can have the opposite effect. Also, events in one country in a region may spur positive/negative interest in a neighboring country and, in the process, affect its currency.
Consider this: large volumes of forex are traded in the markets due to the necessity of currency exchange required in international trade. Large institutions may need to settle accounts in a cross-border manner quite frequently. As an example, an American company, looking to pay its German division, will need to pay them in euros. This means a forex transaction will be completed, and will likely influence the EUR/USD pair, even if only slightly.
Old news (it was released a few hours ago), but for good order, the NY Fed GDP Nowcast estimate for Q1 comes in at 1.40% for the 1st quarter. That is unchanged from last week.  Below are the contributors and non-contributors given the releases this week. By the way, the Atlanta Fed estimate moved up to 2.3% on April 8th (from 2.1%).  Their next estimate will not be until Wednesday April 17.
Many currency pairs will move about 50 to 100 pips (sometimes more or less depending on overall market conditions) a day. A pip (an acronym for Point in Percentage) is the name used to indicate the fourth decimal place in a currency pair, or the second decimal place when JPY is in the pair. When the price of the EUR/USD moves from 1.3600 to 1.3650, that's a 50 pip move; if you bought the pair at 1.3600 and sold it at 1.3650 you'd make a 50-pip profit.

Both types of contracts are binding and are typically settled for cash for the exchange in question upon expiry, although contracts can also be bought and sold before they expire. The forwards and futures markets can offer protection against risk when trading currencies. Usually, big international corporations use these markets in order to hedge against future exchange rate fluctuations, but speculators take part in these markets as well.