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Currency Contracts means any forward contracts, futures contracts, foreign exchange contracts, currency swap agreements, and other similar agreements and arrangements designed to protect against fluctuations in foreign exchange rates.

A simple example of a Currency Option is called a Vanilla Option. This gives you the choice of whether or not to sell one currency and buy another at a specified exchange rate (the protection rate) on a date in the future (the expiry date).

Currency Contract means any futures contract or option thereon providing for the delivery or receipt at a future date of a specified amount of a traded currency at a specified price and delivery point, or any other futures contract or option thereon approved for trading for U.S. persons.

It is a contract between the bank and its customers in which the exchange/conversion of currencies would take place at future date at a rate of exchange in advance under the contract. The essential idea of entering into a forward contract is to fix the exchange rate in advance and thereby avoid the exchange rate risk.

Here are a few benefits of trading in forward contracts: Forward contracts are perfect for hedging. They allow you to protect your investments from fluctuating market prices. These investment vehicles are easy to use and come with lesser regulations.

The exporter in France and the importer in the US agree upon an exchange rate of 1.30 US dollars for 1 euro that will govern the transaction that is to take place six months from the date the currency forward contract is made between them.

In many countries, especially those in the English-speaking world, the practice is to place the currency sign before the amount. In other countries, it's placed after the amount. I'd be inclined to always put it before, whatever the currency. Always put a space between the currency code and the numeral: EUR 2,400,000.