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Forex derivatives ppt

In international finance, derivative instruments imply contracts forex derivatives ppt on which you can purchase or sell currency at a future date. They have important differences, which changes their attractiveness to a specific FX market participant. FX derivatives are contracts to buy or sell foreign currencies at a future date.

The table summarizes the relevant characteristics of three types of FX derivatives: forward contracts, futures contracts, and options. Because the types of FX derivatives closely correspond to the identity of the FX market participant, the table is based on the derivative type-market participant relationship. See our Privacy Policy and User Agreement for details. You can change your ad preferences anytime.