Posted by forex at 9:48 AM
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1. Review the main Forex futures contract conventions. These contracts are bound to a designated 'size per contract,' and unlike forward contracts, they are offered only in whole-dollar amounts.
2. Decide which currency you want to purchase. You can select a currency to hedge another investment or for speculation. The five major currencies are the euro, pound, yen, Canadian dollar and U.S. dollar. Unlike the spot Forex market, all Forex futures are made against the U.S. dollar.
3. Decide how much of the currency you want to purchase in the future. If you think the currency will be lower in the future, you want to sell FX futures or options that give you the right to sell. If you think the currency will be higher in the future, you want to buy FX futures or options that give you the right to buy.
4. Contact your broker. Ask for the specifications of the contract. This should include contract size, time increments, trading hours and any other relevant information. Let the broker know what date you want the contract to end.