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Currency futures are standardized contracts that trade on centralized exchanges. The futures are either cash-settled or physically delivered. Cash-settled futures are settled daily on a mark-to-market basis. As the daily price changes, the differences are settled in cash until the expiration date.

Currency of the contract is an important consideration when entering into an agreement with a business in a foreign country with a different financial system. Because issuing and receiving payments in another currency carries risk, it is often a key point in negotiation of this type of contract.

NSE Clearing acts as legal counter-party to all deals on NSE's Currency Derivatives segment and guarantees settlement. A Clearing Member (CM) of NSE Clearing has the responsibility of clearing and settlement of all deals executed by Trading Members (TM) on NSE, who clear and settle such deals through them.

A physically settled currency futures contract is a physically settled derivative contract to buy (?long position?) or sell (?short position?) a specified amount of a particular currency (the ?base currency?) for an amount of a second currency (the ?quoted currency?) at a specified price (?contract price?) on a certain

Currency futures are futures contracts for currencies that specify the price of exchanging one currency for another at a future date. The rate for currency futures contracts is derived from spot rates of the currency pair. Currency futures are used to hedge the risk of receiving payments in a foreign currency.

Calculating profit and loss on a trade is done by multiplying the dollar value of a one-tick move by the number of ticks the futures contract has moved since you purchased the contract.

Currency Futures Contract is a contract with which one buys or sells a specific foreign currency for delivery at a designated price in the future. Currency Option is the right to buy or sell a foreign currency at a specified price through a specified date.